China's economy expanded at its slowest pace since 2022, raising concerns about the outlook for global growth. Gross domestic product grew by 4.3% in the second quarter compared to the previous year, a significant deceleration from the 5.0% growth recorded in the first quarter.
The slowdown is being driven by a persistent crisis in the nation's property market, coupled with weak domestic consumer spending and a 5.7% drop in investment. Strength in technology-related exports has not been sufficient to counteract the broader domestic weakness, signaling potential headwinds for international trade and commodity markets that rely on Chinese demand.
Market Impact: The S&P 500 rose by 0.39% and the Nasdaq Composite increased by 0.73%. In Europe, the DAX declined by 0.72%.