China Q2 2026 GDP growth 4.3% slowest in over three years

China's economy grew at its slowest pace in more than three years during the second quarter of 2026, expanding by 4.3 percent year-on-year, according to official data released on Wednesday, July 15. The figure fell short of analyst expectations and marked a deceleration from the 5.0 percent growth recorded in the first quarter, highlighting persistent challenges from weak domestic demand despite robust export performance.

The slowdown was driven by sluggish consumer spending and private investment, which continue to be weighed down by a prolonged property sector downturn and cautious household sentiment. This weakness offset strong manufacturing activity, particularly in high-tech sectors such as electric vehicles, artificial intelligence, and semiconductors, which have benefited from robust overseas demand. Exports rose 17.6 percent in the first half of the year compared to the same period a year earlier, providing a cushion to the broader economy.

Analysts noted the deepening imbalance between industrial output and domestic consumption, describing it as a widening gap between supply and demand. The quarterly growth figure also slowed, with GDP expanding 0.9 percent from the...