China Q2 GDP Growth at 4.3%, Slowest Since Q4 2022
China's GDP grew 4.3% YoY in Q2 2026, below the government's target range and the slowest pace since Q4 2022. Fixed-asset investment dropped sharply, led by a record decline in property investment.
China's economic slowdown deepened in the second quarter of 2026. GDP expanded by just 4.3% year-over-year, the weakest reading since Q4 2022 and below the official target range of 4.5% to 5.0%. This followed a 5.0% expansion in Q1, bringing first-half growth to 4.7% YoY.
Fixed-asset investment fell 5.7% YoY in the first half, worsening from a 4.1% decline in the first five months. The drop was driven by a record 18% plunge in property investment, the largest on record dating back to 1992.
Retail sales rose 1% YoY in June, recovering from a 0.6% decline in May, but auto purchases slumped more than 16%. Weakness continues to spread across the world's second-largest economy.
(Source: @TheKobeissiLetter)
Source: The Kobeissi Letter