China’s Economic Growth Slows to Three-Year Low

China’s economic growth slowed to its weakest pace in more than three years in the second quarter, missing analysts’ expectations and falling below the government’s target range for 2026.

Gross domestic product in the world’s second-largest economy rose 4.3% from a year earlier, below the 4.5% forecast by analysts and down from 5% in the first quarter.

The economy remains deeply unbalanced. Industrial production is being supported by exports linked to artificial intelligence, while domestic consumption and investment are being restrained by the prolonged property crisis and the effects of the global oil shock.

Growth reached 4.7% in the first half of the year. Fixed-asset investment fell 5.7% over the period, with private investment down 8.5% and real estate investment plunging 18%.

Industrial production rose 5.3% year on year in June, while retail sales increased 1%, reversing a decline in May.

Analysts expect Beijing to rely primarily on fiscal measures to support domestic demand. Investors are also watching an expected Politburo meeting in late July for signs of the government’s next steps.

(Reuters, bak)