China Economy Expands 0.9% QoQ in Q2

China’s economy grew 0.9% qoq in Q2 2026, matching market expectations but easing from a 1.3% gain in Q1. It was the weakest quarterly growth since Q2 2024, as soft domestic demand and the oil shock linked to the Iran war offset resilient exports. The latest figures highlighted an increasingly uneven recovery, with manufacturing remaining a key growth driver while household consumption and private investment stayed subdued amid the prolonged property downturn and the lingering effects of higher energy costs. The data came ahead of the closely watched late-July Politburo meeting, reinforcing expectations for additional policy support for the rest of the year. Economists expect Beijing to lean more on fiscal stimulus to support growth, as the central bank has limited scope for aggressive monetary easing despite easing oil prices. Premier Li Qiang has called for “a comprehensive and objective understanding” of the economic situation and urged stronger counter-cyclical policy adjustments.





