China reports 5% real GDP growth driven by resilient exports

China's real GDP expanded 5% last year, meeting Beijing's official target, as a surge in exports helped offset a decline in trade with the U.S.; customs data showed a record $1.19 trillion trade surplus for 2025 driven by a 5.5% rise in exports.

China reported that its economy expanded 5% last year when adjusted for deflation. The National Bureau of Statistics released the figure on Monday. A surge in exports helped power the growth and allowed the country to meet its official target. Many analysts had expected new U.S. tariffs to weigh on exports, but shipments to other markets rose. Key details: - Real GDP expanded 5% in the last year, adjusted for deflation, matching Beijing's official growth target and remaining in line with 2024. - China's customs agency reported a record $1.19 trillion trade surplus for 2025, which was driven by a reported 5.5% increase in exports. - Exports to markets around the world rose and more than made up for a drop in trade with the U.S., according to the report. - Larry Hu, chief China economist at Macquarie Group, is quoted as saying the trade war "didn't really hit China heavily." Summary: The reported figures kept China on pace with its official growth target and reflected stronger external demand after a year of trade tensions. Expectations that new U.S. tariffs would choke exports did not materialize in the aggregate data. Undetermined at this time.