China’s Q2 GDP Growth Decelerates to 4.3%, Missing Forecasts

• China’s Q2 GDP grew 4.3% YoY, below 4.5% forecast.
• This marks the slowest annual growth rate since Q4 2022.
• June Retail Sales and Industrial Production data exceeded expectations.

China’s economy expanded by 4.3% year-on-year in the second quarter of 2026, according to official data released on Wednesday. This figure fell short of the market consensus of 4.5% and represented a deceleration from the 5.0% growth recorded in the first quarter. On a quarterly basis, Gross Domestic Product rose 0.9%, aligning with expectations but slowing from the previous quarter’s 1.3% expansion. This marks the slowest annual growth rate since the fourth quarter of 2022. Despite the overall slowdown, June’s Retail Sales increased by 1.0% year-on-year, exceeding the -0.1% forecast, while Industrial Production grew by 5.3%, also surpassing the 4.6% estimate.