China Economic Growth Slows Sharply in Second Quarter, Missing Target

China’s GDP grew 4.3% in the second quarter of 2026, falling below the government’s annual target range amid weak domestic demand and higher oil prices from the Iran war.

• Official GDP figures released on Wednesday showed the world’s second largest economy grew 4.3% in April–June, below Beijing’s 4.5–5% target.
• China’s exports jumped 27% in June compared to a year earlier, while monthly car exports topped one million for the first time.
• Retail sales rose 1% in June, recovering from a 0.6% decline in May, but new home prices fell 0.1% in June, a slightly slower pace than the previous month.

Latest developments

• Jul 15 — The 4.3% growth rate is one of the lowest quarterly rates since reporting began in the 1990s.
• Jul 15 — Analysts described the recovery as 'lopsided,' with exports surging 27% in June while domestic demand slumped.
• Jul 15 — Analysts are watching for potential stimulus measures from the Chinese Communist Party amid concerns about rebalancing the economy away from export dependence.