The Gross Domestic Product (GDP) for the fourth quarter of 2025 came in at 4.5% year-on-year (y/y), slightly exceeding expectations of 4.4% and improving on the prior 4.8%. On a quarter-on-quarter (q/q) basis, GDP grew by 1.2%, beating the forecast of 1.0% and the previous figure of 1.1%.

December 2025 data revealed mixed performances across key economic indicators. Retail sales rose by 0.9% y/y, which was below the expected 1.2% and the prior 1.3%. Industrial production showed stronger growth at 5.2% y/y, outperforming the forecast of 5.0% and improving on the previous 4.8%.

However, fixed asset investment declined by 3.8% y/y, a steeper drop than the expected -3.0% and the prior -2.6%. The property investment sector also continued to contract significantly, with January to December figures showing a 17.2% y/y decrease.

Forex traders should note the stronger GDP and industrial production figures as signs of underlying economic strength, while the weaker retail sales, fixed asset investment, and property investment point to some ongoing challenges in domestic demand and investment sectors. These mixed signals could influence currency movements and central bank policy expectations in the near term.

Original Source: Eamonn Sheridan of investinglive.com