Beijing: China’s economy grew at its slowest pace in a year during the third quarter, signaling deepening challenges in sustaining momentum amid weak domestic demand, a faltering property market, and persistent trade tensions.A

Official data released on Monday showed that China’s gross domestic product expanded by 4.8 percent in the July–September period compared with a year earlier, down from 5.2 percent in the second quarter. On a quarterly basis, the economy grew 1.1 percent, slightly above expectations, but analysts warned that the slowdown underscored mounting structural weaknesses.

The sluggish performance was driven largely by declining consumer spending and continued weakness in the real estate sector. Retail sales rose just 3 percent in September, marking the slowest pace in nearly a year.

Investment remained subdued, with fixed-asset investment falling 0.5 percent in the first nine months of the year, while property investment plunged nearly 14 percent.

Economists said the data reflects an unbalanced recovery, heavily reliant on exports and industrial output to offset soft domestic consumption. While exports to regions such as Southeast Asia and Africa have grown, shipments to the United States fell sharply in September, showing the ongoing impact of global trade tensions.

The downturn in the property market also weighed heavily on growth. New home prices in 70 major cities dropped 0.41 percent in September, the steepest monthly fall in 11 months. Weak housing demand has further dampened consumer confidence, which is already under strain due to stagnant wages and limited job creation.

Despite the slowdown, China is still on track to meet its official target of around 5 percent growth for 2025, though many economists now expect the final figure to come in slightly below that level. The data has fueled renewed calls for Beijing to step up policy support through targeted fiscal stimulus or monetary easing.

However, policymakers remain cautious about launching large-scale stimulus measures, wary of adding to existing debt burdens and financial risks. The government has instead focused on selective support for infrastructure, technology, and green energy sectors while trying to stabilize local finances.

Analysts say the coming months will be critical as Beijing weighs whether to boost short-term growth or press ahead with longer-term reforms to rebalance the economy toward domestic consumption. With global demand uncertain and structural headwinds mounting at home, many believe stronger policy action will be needed to prevent a further slowdown in 2026.