China's economy showed a sharp slowdown in growth during the second quarter, reaching 4.3%, the lowest figure since 2022. This deceleration was attributed to weak domestic demand and issues in the real estate sector, which outweighed strong exports supported by demand for AI chips and electric vehicles.
The National Bureau of Statistics (NBS) announced on Wednesday that China's Gross Domestic Product (GDP) grew by 4.7% year-on-year in the first half of 2026, generating approximately 69.57 trillion yuan (about $10.25 trillion USD) in revenue.
However, in the April-June quarter, the world's second-largest economy slowed to 4.3%, down from 5% growth in the first quarter, falling below China's set annual target.
The GDP data for the first full quarter since the war between the US and Iran began in February were the lowest since late 2022, a period when China emerged from strict COVID-19 restrictions. This data was released one day after customs authorities reported a 27% year-on-year increase in China's exports in June, highlighting the economy's growing reliance on foreign demand amid weak domestic consumption.
The Chinese government had previously lowered its annual growth target in March to the range of 4.5–5%, the lowest level since 1991. This change was made in light of expectations that the adjusted target would give policymakers more room to respond to domestic and global economic challenges.
NBS noted in its first-half report that the economy faces 'greater external instability and uncertainty factors,' as well as a persistent imbalance between active industrial production and weak domestic demand. The slowdown reflects the difficulties the economy is facing due to the protracted downturn in the real estate market, declining consumer confidence, and rising external risks.
According to official data, new housing prices continued to fall in June, although the rate of decline slowed to 0.1% compared to the previous month. Fabien Ip, a market analyst at the investment platform IG, told the BBC that Chinese businesses are absorbing higher energy and raw material costs because 'demand at the checkout is too weak to sustain it.' He added that the situation will become more complicated with the prolongation of the US-Iran war.
Customs data for June, published on Tuesday, showed that China's technological exports were boosted by high global demand for semiconductors powering artificial intelligence (AI) data centers. Increased demand for Chinese electric vehicles (EVs) also significantly supported China's exports, with monthly vehicle exports exceeding one million units for the first time.
Nevertheless, real estate investment, a long-standing drag on economic growth, fell by 18% in the first half, compared to a 16.2% drop in the first five months, according to NBS. Industrial production grew by 5.3% year-on-year in June, an increase from 4.5% growth in May.
The overall urban unemployment rate in China was 5% in June, although unofficial data suggests the unemployment rate among the 16–24 age group is above 15%. Tang Junyu, a regional economist for North Asia at Coface insurance company, noted that 'the second-quarter data highlights the deepening divergence between domestic and external demand.' He added that while exports were supported by demand for AI equipment and 'green technology,' domestic consumption suffered due to the slump in real estate.
Su Jian, a professor of economics at Peking University, suggested that Beijing is unlikely to launch large-scale aggressive stimulus measures in the coming months. However, he believes the authorities may introduce additional support measures focused on 'new infrastructure' in the second half of the year, as investment growth continues to weaken and regulators seek to prevent systemic risks.
Mao Shengyun, Deputy Head of NBS, told the media upon the data release that the growth rate met the annual target. He also noted that despite the slowdown in the second quarter, the economy remains stable, and its fundamental trend toward innovative and high-quality development remains unchanged. Mao emphasized that the economy's resilience helped the country effectively manage risks and challenges, given its adequate energy supply, moderate inflation, and solid foreign trade figures in the first half.
The iPhone 17 Pro Max with 2 TB capacity can be purchased for R$ 14,199, exclusively through Pix payment on Mercado Livre. This top-tier Apple model features the A19 Pro processor, a 120 Hz OLED screen, and 48 MP camera systems.
Considering the historical values of this smartphone, the 23% reduction from its initial price of R$ 18,499 represents a notable saving. The powerful Apple A19 Pro processor, combined with 12 GB of RAM, ensures superior performance compared to competitors, allowing for the execution of demanding applications, games, and Apple Intelligence AI features locally.
The 2 TB offers ample internal storage for those who wish to record many photos and videos. The rear camera system features 48 MP sensors on all lenses. The wide lens, equipped with OIS, and the 120-degree field-of-view ultrawide are ideal for capturing extensive scenes, while the telephoto provides 3x optical zoom for high-quality close-ups. The 18 MP front camera captures excellent selfies and supports Portrait mode even when the device is held vertically.
The 6.9-inch Super Retina XDR OLED screen incorporates 120 Hz ProMotion, reaching a brightness of up to 3,000 nits. This configuration guarantees high-fidelity color reproduction and great fluidity, maintaining visibility in any lighting condition. Display protection is provided by Ceramic Shield, a material that offers resilience against various types of accidents. Ceramic Shield is also present on the back of the iPhone 17 Pro Max. Furthermore, the phone body has an IP68 rating, ensuring resistance against intense dust and accidental immersion.
The battery life is estimated by Apple to be up to 37 hours of video playback. The device is compatible with MagSafe and supports fast 40 W charging using a USB-C port, capable of recharging up to 50% in just 20 minutes. The 512 GB model, priced at R$ 14,199, runs on iOS 26 and is expected to receive a minimum of five operating system updates. Its connections include 5G, Wi-Fi 7, Bluetooth 6.0, NFC, and eSIM support.
In early July 2026, the digital entertainment market was impacted by drastic changes in corporate approach, evidenced by the leak of a letter from Xbox's new CEO, Asha Sharma. This document revealed the layoff of 3,200 employees and the dismantling of studios, signaling that the company faces a deep crisis.
The chief executive publicly admitted that the company is losing 64 cents for every dollar invested. This demonstrates that the traditional model, based on subsidizing consoles and protecting ecosystems through exclusivity, has failed irreversibly.
The crisis has its roots in the mathematical exhaustion of the subscription format. Following a controversial price increase for Game Pass late last year, the service registered a significant user churn, indicating that the promise of an unlimited catalog reached an adoption limit. Concurrently, real industry growth has moved away from conventional hardware, migrating to user-generated content platforms, where companies like Roblox achieved an impressive 60% net revenue growth in the sector outside of China since 2021.
Additionally, operations faced an unprecedented scenario in the supply chain, intensified by the current global fervor for artificial intelligence. The uncontrolled demand for corporate chips drastically raised video game production costs, undermining operating margins and forcing an urgent shift towards efficiency.
As investigated by editor Lewis Packwood in specialized press, Sharma's new administration removed Xbox's cultural immunity, subjecting the division to the same financial rigor as any IT department. This justifies the historic decision to return entire studios to autonomy and distribute super franchises on competing platforms, aiming to stem immediate losses.
For those following the corporate landscape, the main lesson is to recognize that this is a unique moment. The choices made under such financial pressure will not only define the cash flow for the next quarter but also determine the health and survival capacity of the brands over the next five years. Prioritizing immediate profits over structural investments can cause severe damage to the future, creating a difficult-to-recover technological gap.
The constant increase in technological costs suggests that consumers will no longer be able to afford the high price of domestic premium hardware. The vision presented points to cloud gaming as the inevitable solution to balance this equation, a position actively defended since 2024, and which is consolidating as the only viable means to overcome manufacturing crises and ensure ecosystem sustainability, until a new technology emerges capable of changing the rules of the game.
According to the MacroFiscal Bulletin from the Secretariat of Economic Policy, issued by the Ministry of Finance (Finances), recent impacts from oil and other raw material prices continue to exert pressure on consumed values in Brazil.
The ministerial document points out that food inflation remains the main driver of pressure, fueled by the increase in fresh produce, milk, rice, and beans. Furthermore, the economic team observes the persistence of inflation in both services and industrial goods, even with the expectation of a gradual reduction predicted for the second half of this year.
The Ministry of Finance warned that a possible worsening of the El Niño climate phenomenon could pressure food prices this year and represents an additional risk for the 2027 harvest. In a press conference, the Secretary of Economic Policy, Débora Freire, highlighted that 'the main risk is hydrological,' capable of raising electricity costs in the country. Freire clarified that, so far, the Ministry of Finance is not discussing ways to mitigate the effects of El Niño.
Additionally, the effects of the war in the Middle East continue to shape inflation projections, even after a temporary drop in international oil prices during the ceasefire between the United States and Iran. The Ministry of Finance noted, however, that the cessation of this truce, after the projection cut-off date, reignited risks to energy costs.
The economic team considers that the impact of the oil shock has already generated indirect consequences on Brazilian inflation, particularly affecting the prices of services and industrial goods through increased production and logistics costs. As inflation control mechanisms, the bulletin mentions maintaining the basic interest rate at a restrictive level, slowing economic activity, and actions aimed at limiting the transfer of fuel price increases to consumers.
Regarding the tariffs imposed by the United States on Brazilian products, the bulletin estimates that their macroeconomic impact will be contained. The tariff measures announced by Washington in June 2026, which are still awaiting approval, include exceptions for several items, which should keep the aggregate effect on the Brazilian economy limited. The Brazilian government implemented measures since the previous year to expand credit, increase liquidity, and diversify markets for the most vulnerable sectors.
The North American market accounted for approximately 11% of Brazilian exports in 2025, corresponding to less than 2% of GDP before the tariff imposition. The economic team's assessment indicates that the diversion of some sales to other locations compensated for a considerable part of these losses. Regarding Gross Domestic Product (GDP), the growth projection for the Brazilian economy in 2026 was maintained at 2.3%, although there is a forecast of a contraction in activity in the second quarter, following a strong start to the year. This slowdown is mainly attributed to the end of the momentum generated by the record soybean harvest, which boosted the agricultural sector at the beginning of the year. Industry is also expected to reduce its pace, moving from an expansion of 1.2% to 0.8%, reflecting lower vigor in the extractive and construction industries, according to the analysis of the Ministry of Finance's economic team.
