Despite rising global uncertainties, the Chinese economy continues on a path of high-quality development, posting a robust 5.3 percent year-on-year growth in the first half of 2025 and laying a solid foundation for achieving the full-year growth target of around 5 percent.

Data from the National Bureau of Statistics (NBS) showed that China's GDP increased 5.4 percent and 5.2 percent year-on-year in the first and second quarter of this year respectively.

Official data shows that domestic demand contributed to 68.8 percent of the country's GDP growth in the first half of this year, with final consumption expenditure contributing 52 percent.

"These figures indicate that domestic demand, particularly consumption, remains the primary driver of GDP growth," Sheng Laiyun, deputy head of the NBS, said at a recent news conference, adding that, "The upward momentum seen in consumption in the first half will likely carry into the second half."

The data showed the Chinese economy has held up surprisingly well in the face of U.S. tariffs, thanks to resilient exports as well as policy support for consumption and investment, according to Bloomberg News.

International institutes, foreign investors, and economic analysts are increasingly bullish on the growth prospects of China's economy, citing its proactive macroeconomic policies, steady recovery in domestic demand, strong resilience in exports, and great potential in emerging sectors.

In an update published on July 29 to its World Economic Outlook report, the International Monetary Fund (IMF) raised its outlook on China's economic growth in 2025 and 2026. Relative to the forecast in April, growth in 2025 for China is revised upward by 0.8 percentage point to 4.8 percent, according to IMF.

"This revision reflects stronger-than-expected activity in the first half of 2025 and the significant reduction in U.S.-China tariffs," the IMF said. The GDP outturn in the first quarter of 2025 alone implies a mechanical upgrade to the growth rate for the year of 0.6 percentage point. A recovery in inventory accumulation is expected to partly offset payback from front-loading in the second half of 2025.

The IMF also revised upward its forecast for China's growth in 2026 by 0.2 percentage point to 4.2 percent.

Dozens of banks, including Morgan Stanley and Goldman Sachs, upgraded their estimates for China's full-year GDP expansion closer to 5 percent, while the ANZ Bank now sees 5.1 percent growth for 2025.

Andrew Choy, EY China International Tax and Transaction Services Partner, expressed optimism on the growth prospect of the world's second-largest economy, citing China's drive in boosting domestic demand, advancing industrial upgrading and transformation, and developing new quality productive forces.

Choy's optimistic outlook is substantiated by both his first-hand industry experience and EY's market data. "The accelerated pace of merger and acquisition deals, coupled with vibrant IPO activities, clearly reflects strengthening market confidence in China's economic fundamentals," Choy said.

A recent IPO report from EY reveals the Hong Kong exchanges recorded a staggering 711 percent year-on-year fundraising leap in the first half of 2025, while the A-share market posted double digit growth in both deal volume and value.

As China continues to navigate a complex global economic landscape, its economy demonstrates remarkable resilience and vitality. The robust growth momentum paints an encouraging picture for the year ahead, well-positioning itself as a key stabilizer of global economic growth.