China posts slowest GDP growth since 2022 at 4.3% as demand weakens

China’s economy grew 4.3% year on year in the second quarter, the weakest annual pace since the fourth quarter of 2022, as weak domestic demand and an oil shock tied to the Iran war outweighed stronger production and exports. The National Bureau of Statistics of China released the data on July 15, and the reading missed economists’ 4.5% forecast while slowing from 5.0% in the first quarter.

The result also fell below Beijing’s full-year target range of 4.5% to 5%, sharpening pressure on policymakers to add support if they want to keep the economy on track. Market expectations for fresh stimulus had been rising before the release because resilient exports were not enough to offset the drag from weak household demand and softer internal spending.

For the United States, the signal is broader than one disappointing quarter in China. If exports remain the main source of strength while Chinese consumers stay cautious, American companies selling machinery, farm products, luxury goods and industrial inputs into China can face weaker orders. Softer Chinese demand can also filter through commodity markets, pushing down prices for energy and metals and rippling into freight rates, supply chains and corporate margins in the U.S.

The slowdown looks sharper against last year’s benchmark. Official Chinese data showed gross domestic product rose 5.3% in the first half of 2025 and 5.2% in the second quarter of 2025, while China met its 5% growth target for 2025. State media described consumption as a “ballast” for growth, but the latest figures suggest that anchor has not held as firmly in 2026, even with production and exports still providing support.