China Reports 4.7% GDP Growth in H1 2026 as Second-Quarter Expansion Moderates to 4.3%

China’s gross domestic product grew by 4.7% year-on-year in the first half of 2026, reaching 69.57 trillion yuan, according to preliminary estimates published by the National Bureau of Statistics. Economic expansion slowed in the second quarter to 4.3% year-on-year, down from 5.0% in the first quarter, though output expanded 0.9% quarter-on-quarter. The service sector led performance with 5.2% growth in H1, whereas construction contracted by 4.0% and real estate declined by 0.2%, highlighting ongoing sector-level divergence across the national economy.

The slowdown in second-quarter growth to 4.3% reflects shifting momentum across China's macro economy. While industrial manufacturing and service sectors remain positive contributors, persistent weakness in property-related industries continues to drag on aggregate demand, intensifying discussion over macroeconomic policy adjustments for the second half of the year.

China’s economy expanded by 4.7% year-on-year in the first half of 2026, reaching a total gross domestic product of 69.57 trillion yuan, according to preliminary accounting data released by the National Bureau of Statistics (NBS). However, quarterly performance slowed, with second-quarter GDP expanding by 4.3% year-on-year compared to 5.0% growth in the first quarter. On a sequential basis, second-quarter GDP grew by 0.9% relative to the previous quarter. The breakdown across primary, secondary, and tertiary industries shows uneven expansion across broad sectors. In the first half of the year, primary industry value-added rose by 3.7% to 3.15 trillion yuan, secondary industry value-added grew 3.9% to 25.05 trillion yuan, and tertiary industry value-added expanded 5.2% to 41.37 trillion yuan. During the second quarter, tertiary industry growth remained relatively resilient at 5.1%, while secondary industry growth moderated to 3.0%. Detailed industry figures highlight persistent structural divergence within the economy. Overall industrial value-added grew 5.4% in the first half of 2026 and 4.7% in the second quarter, supported by manufacturing growth of 5.5% in H1 and 4.8% in Q2. Financial services expanded 6.7% in H1 (6.9% in Q2), accommodation and catering grew 5.0% in H1 (5.8% in Q2), and transportation, storage, and postal services grew 4.7% in H1 (5.1% in Q2). Wholesale and retail trade grew 3.7% in the first half. Conversely, property-linked sectors remained under pressure. Construction value-added contracted by 4.0% year-on-year in the first half of 2026, deepening slightly to a 4.1% drop in the second quarter. Real estate value-added contracted by 0.2% across both the first half and the second quarter. In agriculture, summer grain production reached 150.75 million tons, up 0.7% or 1.0 million tons from the prior year. Total output of pork, beef, mutton, and poultry meat grew 4.3% year-on-year in the first half to 50.50 million tons, led by a 9.4% increase in poultry meat and a 3.3% increase in pork, while beef and mutton output declined by 1.0% and 3.9% respectively.