China’s Economy Shows Mixed Signals in Early 2025 Amid Growth and Challenges

In the first two months of 2025, China’s economy exhibited mixed signals. Retail sales grew by 4% year-on-year, indicating a boost in consumer spending. Industrial production increased by 5.9%, slightly down from December’s 6.2% growth. However, the urban unemployment rate rose to a two-year high of 5.4%, and housing prices declined in most major cities. These figures highlight the challenges Beijing faces in stimulating domestic consumption amid ongoing property sector issues and escalating trade tensions with the United States.