Key facts
- China's gross domestic product (GDP) grew 4.3% in the second quarter.
- This figure is below the government's annual economic growth target.
- Exports increased by 27% in June compared to the previous year.
- New home prices saw a 0.1% contraction in June.
- Retail sales increased by 1% in June.
China's economic growth slowed sharply in the second quarter, with gross domestic product (GDP) rising by 4.3%, falling short of the government's annual target. This slowdown occurred despite a significant 27% jump in exports in June compared to the previous year, driven by strong global demand for semiconductors and electric vehicles.
Weak domestic demand and a prolonged property market slump continue to challenge Beijing's economic management. While new home prices contracted by 0.1% in June, the pace of decline slightly eased from the prior month. Retail sales showed improvement, rising 1% in June after a decrease in May.
Analysts note that China's reduced annual growth target of 4.5%-5% provides officials with greater flexibility. The latest GDP figures are the first full quarterly data released since the start of the Iran war in February, following a 5% rise in the first quarter.