China economy grows at slowest rate in three years
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The news: China’s economy grew 4.7% in the first half of 2026, with gross domestic product reaching the equivalent of USD 10.27 trillion, according to the National Bureau of Statistics.
Year-on-year growth slowed to 4.3% in the second quarter, down from 5% in the first quarter and the weakest rate since late 2022, when the economy was hampered by Covid restrictions.
The context: China’s leadership signalled a likely slowdown earlier this year when it set its lowest annual growth target (between 4.5% and 5%) in more than 30 years, the New York Times reported. Exports remain strong, rising 27% in June, but domestic consumer spending is still sluggish with retail sales increasing only 1.3% in the first half.
What they said: “Generally speaking, in the first half year, the national economy operated within an appropriate range,” the National Bureau of Statistics said alongside the data release.
“However, we should also be aware that the external environment is becoming increasingly unstable and uncertain, the imbalance between strong supply and weak demand remains acute at home, and the foundation for economic recovery and improvement still needs to be consolidated.”
The sources: National Bureau of Statistics of China, New York Times, WSJ
