China's Economy Posts Slowest Growth in More Than Three Years

China's economy expanded 4.3% year on year in the second quarter of 2026, its slowest pace of growth since late 2022, as weak domestic demand and a prolonged property market downturn offset strong export performance, Doloresz Katanich reported for Euronews.

China's economy recorded its slowest quarterly growth in more than three years as domestic demand remained weak.

Official data released recently showed the economy grew 4.3% during the April-to-June quarter, falling short of analysts' expectations and slowing from the 5.0% growth recorded in the first quarter.

Despite the slowdown, exports remained a bright spot, supported by strong global demand for Chinese electric vehicles and continued investment in artificial intelligence (AI)-related industries.

"This was the slowest growth in any quarter since the lockdown-impacted fourth quarter of 2022," said Lynn Song, Chief Economist for Greater China at ING.

China has largely avoided the broader economic fallout from the war involving Iran, although higher global energy prices have contributed to rising inflation worldwide.

According to Chinese customs data, exports increased 17.6% in the first half of 2026 compared with a year earlier and surged 27% in June, The Associated Press (AP) also reported.