China's GDP meets forecasts, slowing to 0.9% quarterly growth

China's economy expanded by 0.9% in the second quarter of 2026, meeting analysts' predictions but indicating a slowdown from the previous quarter's 1.3% growth. The National Bureau of Statistics reported this figure on Wednesday, highlighting a deceleration in economic momentum.

On a year-on-year basis, China's Gross Domestic Product (GDP) grew by 4.3%. This figure fell short of both the previous quarter's 5% growth and experts' expectations, which had anticipated a slowdown to around 4.5%. This marks the lowest annual growth rate recorded since the end of 2022, a period when China was grappling with the economic repercussions of its stringent "zero-COVID" policy.

Analysts expressed concern that this trend could jeopardize the government's annual growth target of 4.5% to 5%. Julian Evans-Pritchard, an analyst at Capital Economics, described the quarterly growth figures as the worst on record, excluding periods of COVID-19 lockdowns. The government had set the target, the lowest since 1991, in March after achieving its goal of around 5% growth in 2025.

Despite the slowdown, the National Bureau of Statistics asserted that the national economy "operated within an appropriate range under pressure" and demonstrated "strong resilience." The bureau cited increases in production, stable employment, low inflation, and positive foreign trade momentum. However, it also acknowledged the "increasingly unstable and uncertain external environment" and persistent "serious imbalances between the strength of supply and the weakness of demand" domestically. Moody's Analytics economist Sarah Tan echoed these concerns, specifically pointing to "still subdued" demand as a key factor.