Overview
- Official data released Wednesday showed GDP grew 4.3% year‑on‑year in Q2 2026 and 0.9% quarter‑on‑quarter, the slowest pace in more than three years.
- The economy expanded 4.7% in the first half and reached 69.57 trillion yuan, with services leading at 5.2% while industry and agriculture grew more slowly.
- Analysts point to a prolonged property downturn and weak household consumption as the main causes and say government plans to boost spending will take time to lift demand.
- Exports and manufacturing have offered support, with customs data showing a sharp rise in shipments, but retail sales and consumer confidence remain fragile.
- Economists say the figures may reflect both real weakness and more candid reporting by authorities, and they warn the slowdown complicates meeting the 2026 growth target of 4.5–5.0%.