Growth Cools but Stays Resilient
China's economy expanded 4.7% year-on-year in the first half of 2026, the National Bureau of Statistics (NBS) reported on July 15, with gross domestic product reaching 69.5704 trillion yuan (about 69,570.4 billion yuan). The pace marks a moderate step-down from the 5.0% recorded in Q1, as the second quarter grew 4.3% year-on-year and 0.9% quarter-on-quarter — a gradual normalisation rather than a sharp deceleration.
By Industry
| Sector | H1 2026 Value | YoY |
|---|---|---|
| Primary (agriculture) | 3,152.2 billion yuan | +3.7% |
| Secondary (industry) | 25,047.3 billion yuan | +3.9% |
| Tertiary (services) | 41,370.9 billion yuan | +5.2% |
The tertiary sector continued to lead, contributing the largest share of output and underpinning overall stability even as goods-producing industries faced softer external and property-related headwinds.
New Growth Drivers Gain Weight
NBS highlighted that new quality productive forces — advanced manufacturing, green technology and the digital economy — contributed more than 40% of overall growth, a sign that structural upgrading is offsetting weakness in traditional engines such as real estate.
Reading the Second Half
With H1 growth running just below the full-year around-5% target, policymakers retain room for measured support. Analysts expect continued emphasis on domestic demand, technology self-reliance and a stabilising property sector rather than broad-based stimulus.