China's Economy in One Word: Imbalanced

China's latest growth figures show an economy firing abroad and faltering at home. GDP rose 4.3% in the second quarter from a year earlier, down from 5% in the first quarter and the slowest pace since late 2022. The numbers highlight what one economist calls "enormous underlying economic fragilities," reports the Wall Street Journal, as China leans heavily on exports while domestic demand stalls.

Overseas sales are surging—exports jumped 27% in June, powered by AI-related demand for semiconductors and an electric vehicle exports record. The New York Times recaps the domestic situation: "A long-running property crisis has no end in sight, with steep declines in construction dragging down economic growth. Jobs outside of factories are hard to come by and paychecks are not growing. Retail sales of consumer goods have been choppy." Youth unemployment has eased slightly, from 16.3% in April to 15.6% in May, and retail sales and industrial output ticked up in June, but not enough to shift the picture.