China’s Economy Grows 4.3% in Q2, Slowest Since Late 2022
China's GDP expanded 4.3% year-on-year in the second quarter, the slowest pace since late 2022, as weak consumer spending and business investment offset strong exports partly driven by the artificial intelligence boom.
China’s economic growth slowed to 4.3% in the second quarter compared to a year earlier, marking the weakest performance since late 2022. While exports remained robust, partly thanks to the surge in artificial intelligence-related demand, this was balanced out by sluggish consumer spending and declining business investment. The data suggests that domestic demand continues to lag, hampering the overall economic momentum. Although the external sector provided a positive contribution, the internal consumption and investment components are still underperforming, raising concerns about the sustainability of the recovery. This marks the third consecutive quarter of decelerating GDP growth, indicating structural headwinds. Nonetheless, the rapid expansion of the AI sector has provided a significant boost to high-tech exports. In the coming months, Chinese authorities may step up measures to stimulate domestic demand and support the business environment in order to offset potential volatility in external markets.
