Breaking: China’s economy expands 4.3% YoY in Q2, vs. 4.5% expected

China’s economy expanded 4.3% YoY in the second quarter (Q2) of 2026, compared to a 5.0% growth in Q1, the official data published by the National Bureau of Statistics (NBS) showed on Wednesday. The figure came in below the market consensus of 4.5%. 

On a quarterly basis, the Chinese Gross Domestic Product (GDP) rate rose 0.9% in Q2 after advancing 1.3% in the previous quarter, in line with the market consensus. 

China’s annual June Retail Sales rose by 1.0% versus -0.1% expected and -0.6% prior. Industrial Production came in at 5.3% versus 4.6% estimate and May’s reading of 4.5%. 

Meanwhile, the Fixed Asset Investment dropped 5.7% year-to-date (YTD) in June vs. a fall of 4.9% expected and a decline of 4.1% in the previous reading.

AUD/USD reaction to China’s data dump

The Australian Dollar (AUD) edges slightly higher in an immediate reaction to the China’s GDP and activity data. At the time of press, the AUD/USD pair is up 0.18% on the day at 0.6988.