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With a shrinking population, China needs new drivers of growth. Consumer spending has yet to fill the gap

  • Written by Xiujian Peng, Senior Research Fellow, Centre of Policy Studies, Victoria University

China’s latest national accounts show the economy grew by about 5% through 2025 and into the first quarter of 2026, pointing to resilience despite ongoing trade tensions.

But the underlying picture is weaker: growth slowed last year and, while it has stabilised, it remains below pre-COVID levels.

China used to regularly report GDP growth...

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