China's GDP growth slows sharply to 4.3% in second quarter

China's GDP growth slowed sharply to 4.3% in the second quarter of 2025, down from 5.3% in the first quarter and missing market expectations of 4.8%. The data, released by the National Bureau of Statistics, reflects ongoing weakness in the property sector, subdued consumer spending, and sluggish export demand amid global trade tensions. The slowdown marks the weakest quarterly expansion since the pandemic-era lockdowns in 2022, excluding the base effects of early 2023. Analysts attribute the deceleration to a prolonged real estate downturn, high youth unemployment, and cautious household consumption. The Chinese government has rolled out modest stimulus measures, including interest rate cuts and infrastructure spending, but markets are skeptical about their effectiveness. The figures come ahead of key policy meetings where further support may be discussed.

Global Impact

Economically, the slowdown reduces China's import demand for raw materials, weighing on commodity prices and emerging market currencies tied to resource exports. Politically, it pressures Beijing to deliver more aggressive stimulus, potentially escalating trade frictions with the US and EU as China seeks export-led growth.