China posts slowest GDP growth since 2022 at 4.3%, missing expectations

China's economy grew 4.3% in the second quarter, its weakest pace since 2022.

Gross domestic product growth came in at 4.3% in the April to June period, data from the National Statistics Bureau showed Wednesday, missing economists' forecast for 4.5% growth in a Reuters poll, and slowing from 5% in the first quarter.

That second-quarter growth came below Beijing's full-year growth target range of 4.5% to 5%, the least ambitious goal in decades, amid tensions with trade partners, including the U.S. and the European Union, and sluggish domestic demand.

In June, China's retail sales grew 1%, rebounding from a 0.6% drop in the prior month and exceeding economists' forecast for a 0.1% fall. Retail sales in May posted their first monthly decline since late 2022, dragged down by tepid demand and merchants' steep discounting.

Industrial output expanded 5.3% in June from a year ago, stronger than the forecast 4.7% growth, and gaining pace from 4.5% expansion in May.

Chinese economy has grappled with a deepening supply-demand imbalance. Robust industrial production and exports tied to the global AI investment boom continue to power headline growth, even as consumption and private investment weakens amid a prolonged property downturn and volatile energy prices.

Urban investment slumped for the first time in decades last year, falling 3.8% from a year earlier, as a prolonged property downturn and tighter constraints on local governments' borrowing have hampered one of China's traditional growth drivers.

Chinese urban unemployment stood at 5% in June. The leadership is targeting an unemployment rate of less than 5.5% over the next five-year period.

— CNBC's Evelyn Cheng contributed to the report.