China’s growth slows to multi-decade lows as domestic demand falters
China’s Q2 GDP rose 4.3% year-on-year, the slowest since the early 1990s GDP data began (apart from Covid distortions) and below Beijing’s 4.5–5% 2026 target. Domestic demand shows weakness: retail sales +1% in June, fixed-asset investment down 5.7% in the first half, while industrial production rose 5.3% in June. Exports jumped 27% YoY in June, but net exports remain negative due to higher imports, underscoring reliance on trade amid a property slowdown and deflation risks. Analysts warn that monthly indicators point to a bleaker picture than the quarterly GDP, with data gaps and foreign demand cited as partial explanations.