China's National Bureau of Statistics reported on Wednesday that the country's economy grew by 4.3% in the second quarter of the year. This figure represents a slowdown from the 5% growth recorded in the first quarter and falls below the government's annual target range of 4.5% to 5% established in March.
Officials attributed the trend to a combination of weak domestic demand and external factors, including the impact of the conflict in Iran on global oil prices. While exports grew by 27% in June, driven by high demand for semiconductors and electric vehicles, domestic retail sales saw a more modest increase of 1%. Additionally, the property sector continued to struggle, with new home prices falling by 0.1% in June.
Analysts offered differing interpretations of the data. Some market observers noted that businesses are currently absorbing higher energy and raw material costs due to low consumer demand. Conversely, economists at Capital Economics suggested the lower figures might reflect a greater willingness by authorities to acknowledge existing economic weaknesses following the adjustment of the national growth target earlier this year.