China's Economy Grows 4.3%, Lowest in Decades

China's economy expanded by a weaker-than-expected 4.3% in the second quarter, marking one of the lowest quarterly growth rates recorded in decades. The figure falls below the government's target range of 4.5% to 5% and represents one of the slowest periods since official quarterly GDP reporting commenced in the early 1990s. The last time growth was lower was in the fourth quarter of 2022, during China's COVID-19 lockdowns. Official data released Wednesday showed a significant surge in exports, with overseas shipments increasing by 27% in June. This highlights the economy's continued heavy reliance on exports, even as the government strives to boost domestic consumer demand and investment. Monthly car exports surpassed 1 million units for the first time in June. However, domestic vehicle sales plummeted by over 16% during the same month. Retail sales, excluding automobiles, saw a modest 3% increase last month. Economists emphasize the need for more sustainable consumption growth. Analysts are closely monitoring upcoming meetings of high-ranking Communist Party officials later this month for any signals of new stimulus measures. Broader action is deemed essential to invigorate consumer spending if China aims for a more balanced economy, less dependent on exports which currently account for about 20% of its GDP.