China’s economy slowed in the second quarter of this year, expanding at a 4.3% annualized pace, the government said Wednesday.
The April-June data was weaker than the 5% growth recorded in the January-March quarter, despite strong growth in exports thanks partly to the boom in artificial intelligence, and robust demand for Chinese electric vehicles.
China has largely shrugged off wider economic impacts from the Iran war. Exports rose 17.6% in the first half of the year from a year earlier, according to customs data.
But domestic spending and investment have lagged, limiting the boost from China’s export manufacturing.
For the whole of 2026, Chinese leaders have set a growth target of 4.5% to 5%, slower than last year’s 5%.
The International Monetary Fund recently raised its forecast for China’s annual growth by 0.2 percentage point to 4.6%. But it said it expects China’s economy to expand just 4.1% in 2027.
