China's economy grew by 4.3% year-over-year in the second quarter of 2026, falling short of market expectations of 4.5%, according to data released on Wednesday by the National Bureau of Statistics, as reported by FX Street.

This represents a slowdown from the 5.0% growth recorded in the first quarter of 2026, signaling a modest deceleration in the world's second-largest economy during the spring months.

For Japanese investors and traders, the softer-than-expected growth figure may influence regional market sentiment and currency fluctuations, especially given Japan's close economic ties with China.