International News 20 January 2026
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China’s Economy Grows 5% in 2025, but Momentum Slows Sharply
China’s economy expanded 5% in 2025, meeting the government’s annual growth target, according to official data released on Monday (Jan 19, 2026). The figure came in slightly above analysts’ expectations of 4.9%, but still marks one of the slowest growth rates in decades, reflecting weak consumer spending and a prolonged debt crisis in the property sector. In the fourth quarter of 2025, GDP grew 4.5% year-on-year, marginally better than forecasts but down from 4.8% in Q3, making it the slowest quarterly pace in three years. On a quarterly basis, GDP rose 1.2% in October–December, beating expectations of 1.0% and edging above the previous quarter’s 1.1% growth. China also recorded a record trade surplus in 2025, as exporters successfully diversified markets to offset pressure from U.S. tariffs. However, domestic demand continued to weaken, with consumer confidence remaining low due to the unresolved property sector crisis, highlighting growing imbalances between external strength and internal economic fragility.
China’s New Home Prices Extend Decline, Highlighting Ongoing Property
China’s new home prices fell again in December 2025, underscoring persistent stress in the country’s property sector despite repeated government pledges to stabilize it. Data from the National Bureau of Statistics showed prices slipping 0.4% month-on-month, matching November’s decline, while year-on-year prices dropped 2.7%, the steepest fall in five months. Out of 70 cities surveyed, only six recorded price gains, while 58 saw declines. The weakness also extended to the secondary housing market, with faster annual price drops across tier-1, tier-2, and tier-3 cities. Analysts warned that unless more aggressive policies are introduced, the property downturn is likely to continue weighing on China’s economic growth over the next two to three years. The broader data paint a grim picture: property investment plunged 17.2% in 2025, and home sales by floor area fell 8.7%. While analysts expect prices in major cities to gradually stabilize, smaller cities with weaker industrial bases and population outflows face prolonged inventory overhangs. The property crisis, which began in mid-2021 after a government crackdown on excessive borrowing, has left major developers like Evergrande and Country Garden under severe financial strain. Authorities recently signaled they would push for the “normal operation” of financing support programs for stalled but viable housing projects, while an official Communist Party journal stressed the need for strong policy measures to stabilize market expectations and guide the sector’s long-term transformation.
https://internasional.kontan.co.id/news/pelemahan-properti-china-terus-berlanjut-ada-apa-sebenarnya
Oil Prices Inch Higher as Iranian Unrest Eases, Reducing Supply Risk
Oil prices in early trading on Monday, 19 January 2026 rose slightly after modest gains in the previous session. Brent crude rose about 0.08% to around US$64.18 per barrel, while U.S. West Texas Intermediate (WTI) rose about 0.13% to roughly US$59.52 per barrel. The market reaction reflected a reduction in geopolitical risk as Iran’s deadly crackdown on protests calmed civil unrest and lowered the likelihood of U.S. military intervention, which had been feared to disrupt oil exports from a major OPEC producer. The subdued price increases also came amid rising U.S. crude inventories, which exceeded expectations and added downward pressure on prices, even as the broader geopolitical backdrop remains relevant for markets. Investors continue to watch developments in Venezuela’s oil sector and prolonged U.S. military movements in the Gulf for potential impacts on supply, though any significant increase in Venezuelan production is expected to take years to materialize.