China's gross domestic product (GDP) grew 4.7 percent year-on-year in the first half of 2026, data from the National Bureau of Statistics (NBS) showed on Wednesday.

The world's second-largest economy generated around 69.57 trillion yuan (US$10.25 trillion) in output during the period, the data showed.

Value-added industrial output increased by 5.4 percent year-on-year in the first half of 2026. Total retail sales of goods and services, a major indicator of the country's consumption strength, increased by 2.7 percent year-on-year and fixed-asset investment dropped 5.7 percent during the same period.

In the second quarter, the country's economy expanded 4.3 percent year-on-year after recording a five-percent growth in the first three months of this year.

An NBS deputy head, Mao Shenyong, said growth in the first half laid a good foundation for achieving the full-year growth target, and the slowdown in growth in the second quarter was due mainly to short-term and external factors.

Mao also added that the property market is showing some positive changes and consumer prices are expected to maintain a modest upward trend despite the impact from global commodity prices.

Commenting on the data, Le Xia, chief economist for Asia at BBVA Research, noted that the effects of the country's consumption-related subsidies have faded away.

"The conflict in the Middle East has had a major external shock [during the period], that's why we saw some sectors logging a very significant correction or slowdown," he told RTHK.

"At the same time, we have to admit that the impacts from the consumption subsidy programmes are weakening, especially for private consumption in sectors such as auto, smartphones, home appliances."

When asked if authorities might issue stronger stimulus measures in the coming months, especially that from the upcoming Politburo meeting later this month, Xia believes Beijing might still take a "wait and see" approach given the headline figures for the first half of the year were still decent.

"I do believe they'll accelerate some of the existing stimulus tools because the government's expenditures in the first half of the year were not that aggressive compared to the budget," he said.

"So in the second half of the year, I do believe they can accelerate the public expenditures and some of the investment plans to sustain the economy," he added.

Beijing has set a GDP growth target range of 4.5 to five percent for the whole of 2026. (Additional reporting by agencies)
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Last updated: 2026-07-15 HKT 15:40


Edited by Aaron Tam