China's economy grew 4.3% in Q2, missing targets due to weak demand and external pressures, despite strong export performance.
China's economy grew 4.3 per cent in the second quarter, missing Beijing's annual target and marking the weakest expansion since late 2022, reported BBC News.
The slowdown between April and June was attributed to weak domestic demand and the impact of the Iran war on oil prices, despite strong exports. The figure compared with 5 per cent growth in the first quarter.
Customs data showed exports surged 27 per cent in June, driven by semiconductors for artificial intelligence data centres and electric vehicles, which topped one million units in monthly shipments for the first time.
Beijing cut its growth target in March to 4.5-5 per cent, the lowest since 1991. Analysts said this gave authorities room to acknowledge pre-existing weakness rather than a sudden deterioration.
The National Bureau of Statistics cited external instability and domestic imbalances, with supply outpacing demand. Retail sales rose 1 per cent in June after a 0.6 per cent fall in May, while new home prices slipped 0.1 per cent.
Market analyst Fabien Yip said businesses were absorbing higher energy and raw material costs because consumer demand was too weak to bear them. Capital Economics noted the revised target aligned official figures more closely with its own estimates.
