China economic growth falls sharply, missing target

China's economic growth slowed sharply between the start of April and the end of June as weak domestic demand and the impact of the Iran conflict on oil prices overshadowed the country's strong export performance. Official gross domestic product figures showed that the world's second‑largest economy expanded by 4.3% in the second quarter, falling short of Beijing's annual target. The announcement came a day after government data revealed that China's exports jumped 27% in June compared with the same month a year earlier. In March, China lowered its growth target to a range of 4.5%‑5%, the lowest economic growth goal set since 1991. Analysts said the adjustment gives policymakers greater flexibility in managing the economy. The GDP numbers mark the first full quarter of data released since the Iran war began on 28 February, following a 5% increase in the first quarter. Separate data released on Wednesday highlighted the economic challenges Beijing faces at home, including a prolonged property‑market slump and subdued consumer spending. New home prices contracted again, declining 0.1% in June—a somewhat slower pace than the previous month. Retail sales rose 1% in June, improving from a 0.6% change in May. Customs data for June, released on Tuesday, showed that China's tech exports were boosted by surging global demand for semiconductors to power artificial‑intelligence data centers. Strong demand for Chinese electric vehicles also lifted exports, with monthly car shipments topping 1 million for the first time.