Azernews.Az

by Alimat Aliyeva

China's economic growth slowed significantly between April and June as weak domestic demand and the impact of the Iran war on global oil prices outweighed the country's strong export performance, AzerNEWS reports, citing BBC.

Official figures showed that China's gross domestic product (GDP) grew by 4.3% in the second quarter, falling below the government's annual target and marking a slowdown from the 5% growth recorded in the first quarter.

The figures were released just one day after data revealed that China's exports had surged by 27% in June compared with the same month last year, demonstrating the resilience of the country's manufacturing sector despite global uncertainty.

Earlier this year, Beijing lowered its annual growth target to 4.5%–5%, the lowest official goal since 1991. Many economists believe this reflects the government's recognition that the economy is facing long-term structural challenges rather than temporary setbacks.

The second-quarter report is the first full GDP assessment since the Iran war began on 28 February. It also represents China's weakest quarterly economic expansion since late 2022, when the country was recovering from its strict COVID-19 restrictions.

China's National Bureau of Statistics stated that the economy continues to face "greater external instability and uncertainty." The agency also pointed to an imbalance between strong industrial production and weak domestic demand, suggesting that consumers remain cautious about spending.

Additional data released on Wednesday highlighted several ongoing problems, including a prolonged property market downturn, weak consumer confidence, and slower investment growth. These factors continue to weigh on the country's overall economic recovery.

Despite these difficulties, China remains one of the world's leading exporters and continues to invest heavily in advanced technologies such as artificial intelligence, electric vehicles, and renewable energy. Many analysts believe that future economic growth will depend on whether stronger domestic consumption can replace the country's traditional reliance on exports and real estate.