China's economy grew 4.3% in the second quarter, the lowest since late 2022 at the tail end of the COVID-19 pandemic. For the first half, it grew 4.7%, aligning with the government's target.
China's National Bureau of Statistics said on the 15th that second-quarter gross domestic product (GDP) growth was tallied at 4.3%. That missed the market forecast of 4.5% and was the lowest since the fourth quarter of 2022, when the economy was hit by COVID-19, at 2.9%.
The first-quarter GDP growth rate was 5.0%. As a result, first-half GDP growth came in at 4.7%. That is the midpoint of the Chinese government's annual growth target of "4.5–5%."
Vice Director Mao Shengyong of the National Bureau of Statistics said, "In the first half of this year, China's economy withstood internal and external pressures and operated stably within a reasonable range." He added, "Production and supply increased relatively rapidly, the employment situation was generally stable, and prices showed a moderate upward trend." However, he noted that external uncertainties still abound and that, domestically, issues of excess supply and insufficient demand are pronounced, saying the foundation for economic recovery needs to be further consolidated.
In the market, there are concerns that while China's growth rate fell within the target range of 4.5–5%, it could slow further in the second half if there are no notable rebound drivers. Reuters noted that, except for areas showing exceptional growth such as artificial intelligence (AI), weak domestic demand, the real estate crisis, and sluggish investment are dragging on economic growth.
China's National Bureau of Statistics said that in the second half it will push policies to expand domestic demand, improve the supply structure, and foster new growth drivers. It added that it will stabilize employment, corporations, markets, and expectations, accelerate the building of a strong domestic market, and pursue both qualitative and quantitative economic growth.