China's GDP growth in April-June weakest in over 3 years
New Delhi, July 15
China's GDP growth slowed further in the April-June period - weakest in more than three years - as the economy grapples with supply-demand imbalance and structural challenges, official data from Beijing showed on Wednesday.
GDP grew 4.3 per cent in the second quarter of 2026, according to data released by the National Bureau of Statistics in China. This is less than the official target range of 4.5-5 per cent.
"The economy ran within a reasonable range. There were many instabilities and uncertainties externally, and the supply-demand imbalance was prominent domestically," said the Bureau in a statement.
According to Xinhua, gross domestic product (GDP) grew 4.7 per cent year-on-year in the first half of 2026.The world's second-largest economy generated around 69.57 trillion yuan (about 10.25 trillion US dollars) in output during the period, the data showed. In the second quarter, the country's economy expanded 4.3 per cent year-on-year,
According to the official data, the investment in real estate, infrastructure and manufacturing dropped 18 per cent, 2.4 per cent and 1.2 per cent, respectively.
The International Monetary Fund (IMF) said last week that China must urgently overhaul its economic growth model by shifting away from exports towards stronger domestic consumption as it grapples with weak demand, slowing productivity and a rapidly ageing population.
It warned that these structural challenges will weigh on the world's second-largest economy in the years ahead.
Julie Kozack, Director of the IMF's Communications Department, said the IMF continues to see significant structural weaknesses in the Chinese economy despite a modest upward revision in this year's growth forecast.
The IMF's latest 'World Economic Outlook' update projects China's growth to slow from 5 per cent in 2025 to 4.6 per cent in 2026.
Although the 2026 forecast represents a slight upgrade from the Fund's April outlook, Kozack stressed that longer-term structural issues remain a major concern.
— IANS
Reader Comments
4.3% growth is still pretty decent by global standards but definitely a slowdown for China. The real estate drop of 18% is alarming though - that's a huge chunk of their economy. IMF is right to push for more domestic consumption. Interesting times ahead.
While we focus on China's slowdown, I hope our policymakers are paying attention. The IMF's advice about shifting from exports to domestic consumption applies to us too. We can't rely on global demand forever. Also, the aging population problem is real - look at Japan, now China. India needs to invest in healthcare and education while we still have a young workforce. 🤔
The IMF saying China's structural weaknesses are "significant" is a pretty strong statement. And the 18% drop in real estate investment? That's massive. But let's be honest - their numbers have always been a bit... questionable. Hard to know what's really happening behind the official data.
Good that they're acknowledging the supply-demand imbalance. But I wish Indian media would cover our own economic issues with the same depth. Our GDP growth might look better on paper but we have our own structural problems - unemployment, low manufacturing base, underdeveloped rural economy. China at least has world-class infrastructure to show for their growth. We need to be honest about where we stand. 😊
The real estate drop is the key story here. China's property bubble has been deflating for a while. This affects not just construction but entire supply chains - steel, cement, appliances, furniture. The multiplier effect is huge. India should take note and avoid similar real estate speculation bubbles.
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