China's second-quarter growth of 4.3% falls below expectations, adding pressure for stimulus

China's economy grew at a 4.3% annualized rate in the second quarter, missing both market forecasts and its own growth target for the first time since the pandemic. The data, released Wednesday by the National Bureau of Statistics, underscored the persistent drag from weak domestic demand and a property slump, even as exports surged 17.6% in the first half of the year, according to Reuters reports.

"China's economic growth slowed sharply to 4.3% in the second quarter from a year earlier, official data showed on Wednesday."

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The figure fell short of the 4.5% to 5% annual target that Beijing set for 2026, a range that had already been considered ambitious by many economists. The Asia Pacific nation had posted 5% growth in the first quarter, making the sequential deceleration especially stark.

"weakest growth in over three years and below the 5% pace recorded in the first quarter"

AP noted that the slowdown was driven by lagging consumer spending and business investment, which offset the strong export growth fueled by AI demand and Chinese electric vehicle sales. The contrast between robust exports and tepid domestic consumption highlights the uneven nature of the recovery.

CNN reported that China is "struggling to offset economic challenges both at home and abroad," citing the Iran turmoil as a factor roiling global trade. The missing of the growth target for the first time since the pandemic era is likely to intensify calls for additional fiscal and monetary stimulus from Beijing in the coming months.