China's property sector shrinks again, but the official GDP number holds steady

China's National Bureau of Statistics released its preliminary GDP figures for the first quarter of 2026. The overall economy grew by 5.0%, but the real estate sector continued to contract, shrinking by 0.1%.

The official GDP number for China remains stable, but a closer look at the underlying sectors shows a different story. The property sector, a major driver of the Chinese economy, is still shrinking. This suggests that while other parts of the economy are growing, the structural issues in real estate continue to be a drag.