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China's economy slows to 4.3% annual growth in April-June
AP News • • business
Key Points:
- China’s economy grew at a 4.3% annualized rate in the April-June quarter, marking the slowest growth in over three years and falling short of forecasts and the previous quarter’s 5% pace.
- Despite a surge in exports driven by AI and electric vehicles, domestic spending and investment lagged, limiting overall economic momentum amid ongoing COVID-19 recovery challenges.
- Heavy state support has fueled rapid growth in high-tech sectors like AI, computer chips, and robotics, while lower-value manufacturing and service industries face stagnation, leading to an increasingly unbalanced economy.
- Fixed asset investment fell 5.7% year-on-year in the first half of 2024, retail sales rose only 1.3%, and housing prices continued to decline, reflecting weak domestic demand and consumer caution.
- Chinese leaders have set a 2026 growth target of 4.5% to 5%, acknowledging a significant economic transition focused on higher-quality growth and building a robust domestic market amid global uncertainties.
