China’s Economy Grows 4.3 Percent in Second Quarter, With Exports Up 27 Percent in June

China’s gross domestic product expanded 4.3 percent in the second quarter of 2026 from a year earlier, the National Bureau of Statistics reported on Wednesday. The figure was below the 5 percent growth recorded in the first quarter and below market forecasts, according to Reuters and CNBC.

Growth for the first half of the year reached 4.7 percent, remaining inside the government’s full-year target range of 4.5 to 5 percent.

Customs data showed exports rose 17.6 percent in the first half and jumped 27 percent in June, driven by global demand for electric vehicles and other high-tech goods. Fixed-asset investment fell 5.7 percent year-on-year over the six months, while retail sales of consumer goods rose 1.3 percent. Industrial output increased 5.4 percent in the same period.

Mao Shengyong, deputy head of the National Bureau of Statistics, told reporters that the imbalance between strong supply and weak demand remains acute. He said authorities will focus on building a robust domestic market and stabilizing employment.

Lynn Song, chief economist for Greater China at ING Bank, noted that the second-quarter reading was the slowest since the lockdown-affected fourth quarter of 2022. Eswar Prasad of Cornell University said China’s growth model has become increasingly imbalanced, with heavy state support directed toward frontier technologies while other sectors lag.

The International Monetary Fund recently raised its 2026 China growth forecast by 0.2 percentage points to 4.6 percent and projects 4.1 percent expansion in 2027. Wei Li of BNP Paribas Securities described the economy as undergoing a significant transition.