China's growth slows to 4.3% in Q2, undershooting targets as domestic demand weakens

China's Q2 GDP rose 4.3% year-on-year, below Beijing's 4.5–5% target after 5% growth in Q1, signaling weak domestic demand even as exports surged (June exports up about 27% year over year). The release, the first full quarter since the Iran war began, marks the slowest quarterly expansion since late 2022. Domestic headwinds include a property slump and sluggish consumer spending (June retail sales +1%, new-home prices -0.1%). Some analysts say the miss reflects the lower target rather than a sharp downturn, though external demand remains a bright spot amid higher energy costs.