China's Economy Grows 4.3% in Q2, Weakest Pace in Over Three Years

China's economy expanded at a 4.3% annualized pace in the April-June quarter, the government reported Wednesday, marking the slowest quarterly growth in more than three years. The figure fell short of forecasts and trailed the 5% pace recorded in January-March. Overall growth for the first half of 2026 reached 4.7%, according to the National Bureau of Statistics.

Exports provided the main support, rising 17.6% in the first half from a year earlier and 27% in June alone, driven by demand for electric vehicles, computer chips and other high-tech goods. Industrial output increased 5.4% over the same six-month period. Domestic demand stayed subdued.

Fixed-asset investment fell 5.7% year-on-year in the first half, while retail sales of consumer goods rose just 1.3%. Housing prices continued to decline.

He said authorities will focus on building a robust domestic market and stabilizing employment. Chinese leaders have set a full-year growth target of 4.5% to 5%. The International Monetary Fund recently raised its 2026 forecast for China by 0.2 percentage points to 4.6% and projects 4.1% expansion in 2027.

China recorded a record $1.2 trillion global trade surplus in 2025.