China’s economy grows at 4.3%, one of its lowest rates on record

China's economy grew by 4.3% in the three months to June, a rate worse than expected and one of its lowest on record, falling below the government's target. This figure contrasts with strong export growth in June, highlighting the economy's reliance on overseas sales while domestic consumer demand and investment struggle. Fixed-asset investment, historically driven by local governments, has declined significantly, with one economist calling the contraction unprecedented. Analysts are watching for potential stimulus measures from the Chinese Communist party to boost domestic spending and rebalance the economy. The overall growth for the first half of the year was 4.7%, within Beijing's target range.

China's economic growth significantly slowed in the second quarter of the year, with gross domestic product (GDP) rising by 4.3%, falling below Beijing's annual target. This slowdown occurred despite a substantial 27% jump in exports in June. Weak domestic demand and the impact of the Iran war on oil prices are cited as key factors overshadowing the strong export performance. The National Bureau of Statistics noted external instability and uncertainty, as well as an imbalance between strong supply and weak domestic demand. This marks the lowest quarterly expansion since the end of 2022, following a 5% rise in the first quarter.