China's annual economic growth slowed sharply to 4.3% in the second quarter, according to official data released Wednesday. This expansion in the April-June quarter marks a decline from the 5.0% growth recorded in the prior quarter.
The growth rate missed analysts' expectations, as weak domestic demand and an oil shock tied to the Iran war outweighed stronger exports and AI-driven production. The 4.3% increase reflected a broad slump outside of the country's export-oriented manufacturing might.
This second-quarter growth falls below Beijing's full-year growth target range of 4.5% to 5%, the least ambitious goal in decades. The results have stoked questions about whether policymakers will accelerate government spending to ensure they meet their annual target, although any fresh stimulus measures are expected to be limited.