1、China EconomicMonitorIssue:2025 Q3August 2025 KPMG Huazhen LLP,a Peoples Republic of China partnership,KPMG Advisory(China)Limited,a limited liability company in Chinese Mainland,KPMG,a Macau(SAR)partnership,and KPMG,a Hong Kong(SAR)partnership,are member firms of the KPMG global organisation of ind

2、ependent member firms affiliated with KPMG International Limited,a private English company limited by guarantee.All rights reserved.2Key takeawaysIn H1 2025,Chinas GDP grew by 5.3%,exceeding the governments 2025 growth target of around 5%.Real GDP growth in Q2 reached 5.2%year-on-year,down 0.2 perce

3、ntage points from Q1.On a seasonally adjusted quarter-on-quarter basis,GDP grew by 1.1%,above the historicalaverage since 2021 and stronger than market expectations.Despite the drag from elevated U.S.tariffs,Chinas Q2 economic growth continued todemonstrate resilience.On one hand,export front-loadin

4、g activities remained active,supporting robust domestic production.On the other,underthe equipment upgrades and consumer goods trade-in programmes,household consumption and manufacturing investment provided a solidfoundation for domestic demand.For consumption,total retail sales of consumer goods in

5、 H1 rose 5.0%year-on-year,1.3 percentage points higher than the same period last year,maintaining the strong recovery momentum seen since Q4 2024.Q2 growth accelerated by 0.8 percentage points to 5.4%,driven by the dualboost from national subsidies for the trade-in programme and the major mid-year e

6、-commerce promotional events.Chinas exports showed stronger-than-expected resilience amid global tariff headwinds,with growth accelerating from 5.7%in Q1 to 6.1%in Q2.Key drivers included:a cyclical rebound in global manufacturing sentiment during the U.S.reciprocal tariff exemption period;further d