Stories

Wed, 15 Jul 2026

Wed, 15 Jul 2026 China economic growth falls sharply, missing target

Weak demand domestically and the impact of the Iran war on oil prices overshadowed the country's strong exports.
China's economic growth slowed down sharply from April to June, with a GDP growth rate of 4.3%. This is below Beijing's annual target and lower than the 5% rise in the first quarter. Despite strong exports, weak domestic demand and the impact of the Iran war on oil prices contributed to the slowdown. China's National Bureau of Statistics noted that there are more external instability and uncertainty factors affecting the economy, as well as an imbalance between strong supply and weak demand. Data released earlier showed that China's exports jumped 27% in June compared to a year earlier. However, separate data highlighted challenges in the domestic economy, including a property market slump and weak consumer spending. New home prices contracted by 0.1% in June, while retail sales rose by 1% after a 0.6% decrease in May. Market analyst Fabien Yip noted that Chinese businesses are absorbing higher energy and raw materials costs due to weak demand. The situation is expected to become more challenging if the Iran war continues, according to Yip. On a positive note, China's tech exports were boosted by soaring global demand for semiconductors, while car exports topped one million for the first time in June.