# China's Investment Slump Slows Economic Growth Second-quarter economic growth hits lowest level since 2022. - **Source:** [US Top News and Analysis](https://brifing.si/source/635540e9-943e-450d-ae52-ae0bfe3b67eb) - **Published:** 2026-07-15 - **Topic:** [Business](https://brifing.si/c/business) - **Original article:** - **On Brifing:** https://brifing.si/s/6f6d677f-dac9-4c43-987b-9b1d4cacc836 ## China's Growth Performance China's economic growth in the second quarter slowed to its lowest level since the fourth quarter of 2022. GDP growth came in at 4.3%, below economists' expectations. This slowdown is attributed to tensions with trade partners and sluggish domestic demand. ## Sharp Decline in Investments Urban fixed-asset investment fell by 5.7% compared to the same period last year. This decline is explained by local governments redirecting resources to debt restructuring and a shortage of eligible projects. Notably, real estate and infrastructure investments saw significant drops. ## Recovery in Consumption Retail sales in June rose by 1%, surpassing economists' forecasts. This increase is seen as a sign of recovery from the previous month. However, prolonged property stagnation and volatile energy prices continue to weigh on consumption. ## Rise in Industrial Output Industrial output in June increased by 5.3% year-on-year. This growth is attributed to strong exports fueled by global AI investments. However, weak consumption and private investment are straining economic balances. ## Calls for Stimulus Economists expect stimulus measures, such as a policy rate cut, to be ramped up in the third quarter due to slowing growth. These measures are seen as crucial to boosting investment demand and supporting economic growth. ## Future Expectations For China to meet its economic growth targets, policymakers must consider both internal and external balances. Strong exports and rising industrial output remain key factors supporting the economy. ## Sources covering this story - https://www.cnbc.com/2026/07/15/china-gdp-retail-sales-investment-june-.html — --- _Summary written by Brifing from the original reporting. Copyright in the original article belongs to its publisher; read the full piece at the link above._