According to the National Bureau of Statistics, China's gross domestic product (GDP) increased by 4.7% year-on-year in the first half of 2026, reaching 69.57 trillion yuan (equivalent to 10.28 trillion US dollars).
Industrial Production and Consumption Dynamics
Key economic indicators in the country demonstrated stable operation, supported by expanding new growth drivers. In the first six months of 2026, industrial output with added value from enterprises exceeding a certain size and having annual revenue of at least 20 million yuan grew by 5.4%. Particular attention should be paid to the growth in industrial output in the equipment manufacturing and high-tech manufacturing sectors, which increased by 9.3% and 13.3%, respectively.
Consumer activity also showed positive momentum: retail sales of goods and services grew by 2.7% compared to the previous year. The total volume of retail sales of consumer goods for the period from January to June amounted to 24.87 trillion yuan. Furthermore, the service sector demonstrated an increase in output of 5.2%.
Foreign Trade and Investment
China's foreign trade during this period was very active: imports and exports totaled 25.47 trillion yuan, representing a year-on-year growth of 16.9%. However, fixed investment, excluding rural households, decreased by 5.7% year-on-year, amounting to 22.64 trillion yuan.
Assessment of the Economic Situation
Mao Shengyun, Deputy Head of the NBS, noted that China's overall economic activity in the first half of the year remained within acceptable limits as new qualitative productive forces continued to gain momentum. Nevertheless, Mao added that strengthening the foundation is necessary to ensure sustainable economic recovery, given growing external uncertainty and the imbalance between domestic demand and supply.
Bruce Pang, Associate Professor at CUHK Business School, highlighted the main strengths of China's economy in the first half: consumption recovery, increased rural incomes, and the resilience of high-tech manufacturing. Among the negative factors, he pointed to the continued weakening of investment, declining capacity utilization, and moderate consumer demand. Pang forecasts that the economy will maintain moderate recovery in the second half of the year, emphasizing that policy efforts should be directed towards stabilizing investment, stimulating domestic demand, and supporting industrial modernization.