China Economy Expands 0.9% QoQ in Q2

2026-07-15 02:13 By Farida Husna 1 min. read

China’s economy grew 0.9% qoq in Q2 2026, matching market expectations but easing from a 1.3% gain in Q1.

It was the weakest quarterly growth since Q2 2024, as soft domestic demand and the oil shock linked to the Iran war offset resilient exports.

The latest figures highlighted an increasingly uneven recovery, with manufacturing remaining a key growth driver while household consumption and private investment stayed subdued amid the prolonged property downturn and the lingering effects of higher energy costs.

The data came ahead of the closely watched late-July Politburo meeting, reinforcing expectations for additional policy support for the rest of the year.

Economists expect Beijing to lean more on fiscal stimulus to support growth, as the central bank has limited scope for aggressive monetary easing despite easing oil prices.

Premier Li Qiang has called for "a comprehensive and objective understanding" of the economic situation and urged stronger counter-cyclical policy adjustments.



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China Economy Expands 0.9% QoQ in Q2
China’s economy grew 0.9% qoq in Q2 2026, matching market expectations but easing from a 1.3% gain in Q1. It was the weakest quarterly growth since Q2 2024, as soft domestic demand and the oil shock linked to the Iran war offset resilient exports. The latest figures highlighted an increasingly uneven recovery, with manufacturing remaining a key growth driver while household consumption and private investment stayed subdued amid the prolonged property downturn and the lingering effects of higher energy costs. The data came ahead of the closely watched late-July Politburo meeting, reinforcing expectations for additional policy support for the rest of the year. Economists expect Beijing to lean more on fiscal stimulus to support growth, as the central bank has limited scope for aggressive monetary easing despite easing oil prices. Premier Li Qiang has called for "a comprehensive and objective understanding" of the economic situation and urged stronger counter-cyclical policy adjustments.
2026-07-15
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China’s GDP grew 1.2% quarter-on-quarter in Q4 2025, beating market expectations of 1.0% and following a 1.1% increase in Q3, logging the fastest expansion in three quarters. The latest reading reflected sustained policy support from Beijing alongside efforts to curb excess industrial capacity and rein in aggressive price competition. Leaders in December pledged to maintain a proactive fiscal stance for this year, with the statistics bureau calling for stronger macro policies and expanded domestic demand. Authorities also vowed to strongly lift household consumption’s share of the economy over the next five years. On the monetary front, the PBoC continued to keep liquidity ample, guiding borrowing costs lower, and providing cross-cyclical support without resorting to excessive stimulus. Recent measures included sector-specific lending rate cuts, signals of possible reserve-requirement and broader rate reductions, and steps to stabilize capital markets against mounting headwinds.
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