China's Economic Growth Hits Lowest Point in Over Three Years
China's GDP Growth Decline
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New Delhi, July 15: China's economic growth has further decelerated in the April to June quarter, marking its slowest pace in over three years, as revealed by official statistics from Beijing on Wednesday.
The GDP increased by 4.3 percent during the second quarter of 2026, falling short of the government's target range of 4.5 to 5 percent, according to the National Bureau of Statistics.
In a statement, the Bureau noted, “The economy is operating within a reasonable range, but there are numerous instabilities and uncertainties from external factors, alongside a significant supply-demand imbalance domestically.”
As reported by Xinhua, the GDP rose by 4.7 percent year-on-year in the first half of 2026, with the economy generating approximately 69.57 trillion yuan (around 10.25 trillion US dollars) during this timeframe. In the second quarter, the economy expanded by 4.3 percent compared to the same period last year.
Official figures indicate a decline in investments across various sectors, with real estate, infrastructure, and manufacturing seeing drops of 18 percent, 2.4 percent, and 1.2 percent, respectively.
Last week, the International Monetary Fund (IMF) emphasized the urgent need for China to reform its economic growth strategy, advocating a shift from reliance on exports to enhancing domestic consumption, as the nation faces weak demand, declining productivity, and a rapidly aging population.
The IMF cautioned that these structural challenges are likely to hinder the growth of the world's second-largest economy in the coming years.
Julie Kozack, the Director of the IMF's Communications Department, remarked that despite a slight upward revision in the growth forecast for this year, significant structural weaknesses persist within the Chinese economy.
The latest update from the IMF's ‘World Economic Outlook’ predicts a slowdown in China's growth from 5 percent in 2025 to 4.6 percent in 2026.
While this forecast for 2026 shows a minor improvement from the Fund's April predictions, Kozack emphasized that long-term structural issues remain a critical concern.