China economic growth falls sharply, missing target
China’s economic growth slowed sharply between early April and late June as weak domestic demand and the impact of the Iran war on oil prices eclipsed the country’s strong exports.
Official gross domestic product (GDP) figures showed that the world’s second-largest economy grew by 4.3% in the second quarter of the year, below Beijing’s annual target.
The announcement came a day after government data showed China’s exports rose 27% in June from a year earlier.
In March, China lowered the target to a range of 4.5%-5%, the lowest economic expansion target since 1991; Some analysts say the move gives authorities more flexibility in managing the economy.
The figures mark the first quarter of GDP data since the start of the Iran war on February 28 and follow a 5% increase in the first quarter.
Separate data released on Wednesday underlined the economic challenges Beijing faces at home; these include the prolonged housing market slump and weak consumer spending.
New home prices contracted again, although the 0.1% decline in June was slightly slower than the previous month.
But retail sales rose 1% in June after a 0.6% decline in May.
Customs data for June released on Tuesday showed China’s technology exports rising as global demand for semiconductors to power artificial intelligence (AI) data centers soared.
Rising demand for China’s electric vehicles (EVs) has also provided a major boost to China’s exports; Monthly automobile exports exceeded one million for the first time.
