China’s economic expansion decelerated in the second quarter of 2023, with GDP growth slowing to 4.3% year-on-year from 5.0% in the first quarter. This marks the weakest pace of growth since late 2022, according to FX Street.
The moderation in growth reflects ongoing challenges in China’s post-pandemic recovery, as the initial rebound momentum seen earlier in the year began to fade. ING economist Lynn Song has highlighted this slowdown as a sign that the economy is facing headwinds despite government efforts to stimulate activity.
For Japanese investors and markets, this development signals potential implications for regional trade and supply chains, as China remains a key economic partner and a major driver of global demand.