China’s H1 2026 economy runs steadily with robust new growth drivers

China’s national economy maintained stable operation within a reasonable range in the first half of 2026 despite a complex external environment with rising spillover risks from geopolitical conflicts. Economic structure continued to optimise while emerging growth momentum expanded rapidly, demonstrating strong resilience and market vitality.

According to official economic statistics, China’s gross domestic product totalled 69.5704 trillion yuan in the first six months of 2026, registering a year-on-year growth of 4.7 percent at constant prices. Breaking down by industry sector, the primary industry achieved an added value of 3.1522 trillion yuan, up 3.7 percent year on year, contributing 3.7 percent to overall economic growth. The secondary industry recorded 25.0473 trillion yuan in added value, with a 3.9 percent year-on-year increase and a 30.2 percent growth contribution. The tertiary industry reached 41.3709 trillion yuan in added value, climbing 5.2 percent year on year and driving 66.1 percent of economic growth, a rise of 5.9 percentage points from the same period last year.

Quarterly data shows sustained stable performance. The second-quarter GDP stood at 36.1511 trillion yuan, growing 4.3 percent year on year at constant prices. The primary, secondary and tertiary industries in the second quarter posted year-on-year growth of 3.7 percent, 3.0 percent and 5.1 percent respectively, with the tertiary industry’s growth contribution advancing 8.2 percentage points year on year to 69.4 percent. Seasonally adjusted Q2 GDP saw a month-on-month increase of 0.9 percent, maintaining steady economic expansion momentum.

Major industrial sectors delivered solid growth with improved supply quality and efficiency in the first half of the year. China’s agriculture sector maintained stable production and a good summer grain harvest, with the added value of farming, forestry, animal husbandry and fishery rising 4.0 percent year on year. Industrial output expanded steadily, with industrial added value growing 5.4 percent year on year and manufacturing added value increasing 5.5 percent, jointly underpinning overall economic expansion.

The service sector maintained robust growth momentum. The information transmission, software and information technology services sector and the leasing and business services sector achieved year-on-year growth of 10.7 percent and 11.9 percent respectively in the first half of the year. The financial industry also delivered steady expansion, with its added value rising 6.7 percent year on year. Key service sectors continued to fuel economic growth and industrial upgrading.

Domestic consumption continued to upgrade and expand while foreign trade registered rapid growth. Final consumption expenditure drove GDP growth by 2.1 percentage points in the first half of the year. Resident spending on daily necessities, transportation and communication, as well as education, culture and entertainment all achieved steady year-on-year increases. Optimised investment structure became more prominent, with capital formation contributing 1.7 percentage points to GDP growth. Investment in intellectual property products grew 9.4 percent year on year, boosting overall investment vitality.

China’s foreign trade sector displayed outstanding resilience amid global market volatility. Net exports of goods and services lifted GDP growth by 0.8 percentage points in the first half of the year. Mechanical and electrical product exports maintained high-speed expansion with a year-on-year growth rate of 20.1 percent, reflecting continuous optimisation of the country’s trade structure and strong industrial chain advantages.

New economic driving forces gathered pace and boosted development quality throughout the period. Investment in high-tech service industries and high-tech manufacturing industries outpaced overall fixed-asset investment growth by notable margins. The added value of high-tech manufacturing and digital product manufacturing above designated size grew 13.3 percent and 12.3 percent year on year respectively, far exceeding the average growth level of overall industrial sectors.

In-depth integration of digital technology and the real economy further unlocked development potential. The operating revenue of above-scale information transmission and software service enterprises increased steadily from January to May. Online retail sales of physical goods and service consumption both maintained positive growth. Digital transformation continues to empower traditional industries and cultivate new growth space for the national economy.

Moving forward, targeted policy guidance and continuous industrial upgrading will further consolidate the foundation of stable economic operation. The expansion of high-end manufacturing, digital economy and modern service industries will continue to drive structural optimisation and high-quality economic development.