China’s GDP growth rate decelerated to 4.3% in the April-June period, marking the slowest growth in over three years. This figure falls below the official target range of 4.5-5%, according to data released by the National Bureau of Statistics in China.
The Bureau stated that the economy operated within an acceptable range, despite facing external instabilities and uncertainties, along with noticeable supply-demand imbalances domestically. In the first half of 2026, China’s gross domestic product (GDP) increased by 4.7% year-on-year, reaching approximately 69.57 trillion yuan (about 10.25 trillion US dollars) in output.
Official data revealed declines in investments in real estate, infrastructure, and manufacturing by 18%, 2.4%, and 1.2%, respectively. The International Monetary Fund (IMF) recently emphasized the need for China to revamp its economic growth model by transitioning towards stronger domestic consumption, away from heavy reliance on exports.
Julie Kozack, Director of the IMF’s Communications Department, highlighted persistent structural weaknesses in China’s economy, despite a slight upward revision in growth forecasts for 2026. The IMF’s latest projections foresee China’s growth rate decreasing from 5% in 2025 to 4.6% in 2026, underscoring ongoing concerns about long-term structural challenges.
