The slowest annual expansion since Q4 2022 reflects weaker demand amid a property downturn and energy price pressures.
China’s economy grew 4.3% year-over-year in Q2 2026, down from 5.0% in Q1 and below the 4.5% market consensus. The print marks the slowest pace since Q4 2022 and undershoots Beijing’s 4.5%-5.0% annual growth target.
Analysts had expected a modest deceleration but not a miss of this magnitude. The property sector’s prolonged slump and elevated oil prices weighed on domestic demand, offsetting stimulus efforts.
Markets are monitoring policy responses as growth risks intensify in the second half of the year.