world-economy

China's Q2 Growth Hits Three-Year Low at 4.3%, Weakest Since Late 2022

China's economy expanded at its slowest pace in over three years during the second quarter, growing just 4.3% on an annualized basis, the government reported Wednesday. The reading fell short of forecasts and marked a sharp deceleration from the prior quarter's 5% growth rate. Strong export performance, buoyed by global demand for electric vehicles and high-tech goods, proved insufficient to offset weakness in domestic consumption and business investment. Exports surged 6% in the first half of 2026 and jumped 27% in June alone. However, analysts note the economy has become increasingly unbalanced, with heavy state investment concentrated in advanced sectors like artificial intelligence, semiconductors and robotics, while lower-value manufacturing and service industries lag. China's 2 trillion dollar global trade surplus draws complaints from trading partners citing substantial state subsidies.