China's GDP Growth Slows to 4.3% in Second Quarter as Iran War Hits Oil Prices

China’s economy grew 4.3% in Q2 2026 — its weakest pace since late 2022 — as high oil prices and sluggish domestic spending weighed on growth, falling short of Beijing’s 4.5–5% target. (Credit: Image generated thru Microsoft CoPilot)

China's economy grew by 4.3 per cent in the second quarter of 2026, the slowest pace since late 2022, as the war between Israel and Iran pushed up oil prices and weak domestic spending continued to weigh on activity, according to data from the National Bureau of Statistics. The figure undershot the government's annual target range of 4.5 to 5 per cent.

The reading marked a slowdown from the 5 per cent growth recorded in the first quarter and came despite a 27 per cent year-on-year jump in exports in June. For the first half of 2026 overall, the world's second largest economy grew 4.7 per cent, generating roughly 69.57 trillion yuan (around $10.25 trillion) in output, the Bureau said.