China posts slowest GDP growth since 2022 at 4.3%, missing expectations
YANTAI, CHINA – JULY 14, 2026 – Containers parked at Yantai Port International Container Terminal in Yantai City, Shandong Province, China, on July 14, 2026.
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China’s economy grew at its weakest pace since 2022 in the second quarter; While the accelerated decline in investments deepened the pressure on growth, consumption remained weak.
Data released by the Office for National Statistics on Wednesday showed gross domestic product growth was 4.3% in the April-June period, missing economists’ forecast of 4.5% growth in a Reuters poll and slowing from 5% in the first quarter.
Second-quarter growth was below Beijing’s full-year growth target range of 4.5 percent to 5 percent due to tensions with trading partners including the United States and the European Union and sluggish domestic demand; this was the least ambitious goal in decades.
Urban fixed asset investments, including real estate development and infrastructure projects, fell 5.7 percent in the first half of the year compared to a year ago; This was worse than expectations for a 4.9 percent decline in a Reuters poll and sharpened from a 4.1 percent contraction in the first five months.
China’s retail sales rose 1% in June, rebounding from a 0.6% decline in the previous month and beating economists’ forecast for a 0.1% decline. Retail sales in May recorded their first monthly decline since the end of 2022, driven by sluggish demand and heavy discounts from sellers.
Industrial production increased by 5.3% in June compared to a year ago; It was stronger than the 4.7% growth forecast and accelerated from May’s 4.5% growth.
The Chinese economy is struggling with a deepening supply-demand imbalance. Strong industrial production and exports driven by the global AI investment boom continue to support headline growth, even as consumption and private investment weaken amid a protracted housing crisis and unstable energy prices.
Urban investment fell 3.8 percent last year from the previous year for the first time in decades, as a protracted real estate crisis and tight restrictions on local government borrowing disrupted one of China’s traditional growth drivers.
Urban unemployment in China stood at 5% in June. The leadership aims to have the unemployment rate below 5.5 percent in the next five years.
— CNBC’s Evelyn Cheng contributed to the report.
