Beijing, October 21, 2025 – China economic growth has slowed sharply, signaling one of its weakest performances in recent years as the country grapples with a prolonged property downturn, sluggish domestic demand, and growing investor anxiety. According to official data and market reactions reported by The Guardian, the world’s second-largest economy expanded at a slower pace in the third quarter of 2025, prompting concerns about global financial stability.
The latest GDP figures reveal a deepening slowdown that has rippled across Asian markets and beyond. Chinese equities remained volatile, while global markets — including the FTSE 100 — reflected investor uncertainty. Economists say that China’s economic deceleration is the result of a combination of structural and cyclical challenges that have been building over the past several quarters.
Property Market Under Pressure
At the center of the downturn is China’s struggling property sector, long considered a pillar of the nation’s economic engine. Recent months have seen a steep fall in house prices, reflecting waning consumer confidence and tightening credit conditions. Developers continue to face liquidity issues, and household demand for new properties has plummeted despite government stimulus measures.
According to data released this week, residential property prices in major cities such as Shanghai, Beijing, and Shenzhen have declined for a sixth consecutive month. Analysts warn that the decline could further strain local government finances, which heavily depend on land sales and real estate-related revenues.
“China’s property sector remains the Achilles’ heel of its economy,” said one senior economist quoted in The Guardian. “Without a sustainable recovery in housing demand, it’s difficult to see how broader economic growth can stabilize.”
Global Markets React
The ripple effects of China’s slowdown have been immediate. Asian stock markets opened lower following the release of the GDP data, while European markets, including London’s FTSE 100, also traded cautiously. Global investors are increasingly factoring in the possibility of slower Chinese demand for commodities and manufactured goods, which could dampen international trade momentum.
Commodities such as copper and iron ore — key indicators of industrial demand — recorded modest declines as traders reassessed growth expectations. Meanwhile, multinational companies with significant exposure to the Chinese market, including automakers and tech manufacturers, saw their shares dip in early trading.
Government Measures and Policy Outlook
In response to the slowdown, Beijing is expected to introduce additional policy measures aimed at stimulating investment and consumer spending. The People’s Bank of China has already cut key lending rates several times this year and injected liquidity into financial markets to support banks and local governments. However, economists suggest that more structural reforms may be needed to address the underlying issues of high debt, an aging population, and weak productivity growth.
The Chinese government continues to emphasize “high-quality growth” — a shift from its previous focus on rapid expansion. Yet, analysts remain skeptical about how quickly the country can pivot toward sustainable domestic consumption while managing financial risks.
A Global Economic Turning Point
The implications of China’s economic trajectory extend far beyond its borders. As one of the largest contributors to global GDP, a slowdown in China poses challenges for international trade, supply chains, and commodity markets. For emerging economies reliant on Chinese investment and demand, the downturn could translate into reduced export revenues and tighter financing conditions.
Despite the grim short-term outlook, experts believe that China’s long-term prospects remain resilient if the government can successfully rebalance its economy. “A soft landing is still possible,” said a senior market strategist. “But it will require coordinated policy action, stronger confidence measures, and a decisive push to revitalize the property market.”
As global investors watch closely, China’s next steps will likely define the direction of global economic momentum heading into 2026.
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