China’s economy is growing, but it’s stuck in a deflationary trap

China’s economy is growing, but it’s stuck in a deflationary trap

For China, hitting its annual growth target is as much a political victory as an economic one. It is proof that Beijing can weather slowing global demand, a slumping housing sector, and mounting pressure from Washington.Against that backdrop, China announced last week that its economy grew 5% in 2025, neatly hitting the government’s official GDP goal. But for ordinary Chinese households, the picture looks far less reassuring. Jobs are scarcer, p…