A view of the Lujiazui area in Shanghai Photo: VCG

The fundamentals of economic operation remain unchanged, an official with the National Bureau of Statistics (NBS) said on Wednesday, responding to questions about the second-quarter growth slowdown and the outlook for the remainder of the year.

Overall, there are solid conditions and support for achieving the main annual targets, especially the economic growth target, Mao Shengyong, a deputy commissioner of the NBS, said at a press conference.

China's GDP expanded by 4.7 percent year-on-year to 69.57 trillion yuan ($10.28 trillion) in the first half of 2026. In the second quarter alone, the economy expanded by 4.3 percent compared with the same period last year, easing from the 5.0 percent growth recorded in the first quarter, NBS data showed.

"We should view and analyze the second quarter growth fluctuation comprehensively and objectively," Mao said, noting that the slowdown was due to some short‑term factors and external influences.

The petrochemical‑related industries were affected by external factors while coal production was affected by domestic short‑term factors. "Other industries remained normal. The basic picture of stable, and the shift toward new and high‑quality economic performance has not changed," Mao said.

Mao noted that in terms of nominal growth, the second quarter performed better than the first, with a larger increment. "Second quarter's increment was not only larger than the first quarter's but also more than 700 billion yuan larger than the increment in the same period last year —from a nominal perspective. "

In the second quarter, the indicators reflecting new growth drivers performed well, showing that the trend of new drivers growing stronger continues, Mao added. For example, in the quarter, the value‑added of equipment manufacturing above designated size grew by 9.7 percent, accelerating by 0.8 percentage points over the previous quarter.

Looking at second quarter month by month, there was a gradual improvement —indicators such as industrial output, services, foreign trade, and Purchasing Managers' Index saw continued improvement from April, May to June, forming a progressive momentum, Mao added.

On the outlook for the second half and the full year, Mao said the first‑half economic growth of 4.7 percent has laid a good foundation for achieving the main annual targets, especially the growth target, with positive factors including the direct contribution of new growth drivers to economic growth exceeding 40 percent, traditional industries accelerating their transformation and upgrading and the effects of policy measures continuously taking effect. 

The few individual industries that dragged down growth in the second quarter are seeing short‑term effects are gradually eliminated, while the external impact is limited and is largely controllable, so they will gradually recover later, said Mao.

Mao said the results of previously introduced policies will continue to emerge in the second half of the year and the central government will also, in response to changing conditions, introduce more proactive and effective policies in a targeted manner to promote stable, new and high‑quality economic development.

China aims to achieve a full year target of 4.5 to 5 percent for 2026.

Global Times