BEIJING \u2014 China\u2019s economy began to lose momentum in April 2026 as\ngrowth in consumption, industrial output, and investment failed to meet\nmarket expectations. This slowdown occurs as the impact of the Iran war\ncontinues to weigh on the recovery momentum of the world\u2019s\nsecond-largest economy.<\/p>\n
Data released by China\u2019s National Bureau of Statistics on Monday\n(17\/05\/2026) shows that retail sales grew by only 0.2 per cent in April\ncompared to the same period last year. According to CNBC, this figure is\nfar below economists\u2019 projections, which anticipated a 2 per cent\nincrease, and represents a sharp deceleration from the 1.7 per cent\ngrowth recorded in March.<\/p>\n
Meanwhile, China\u2019s industrial production grew by 4.1 per cent\nyear-on-year in April, slowing down from the 5.7 per cent growth seen in\nMarch and falling below Reuters survey expectations, which had predicted\na 5.9 per cent increase.<\/p>\n
Urban fixed-asset investment, including the property and\ninfrastructure sectors, contracted by 1.6 per cent in the first four\nmonths of 2026 compared to the same period last year. This occurred\ndespite previous market forecasts predicting a growth of 1.6 per cent.\nDuring the January-March 2026 period, urban investment had still grown\nby 1.7 per cent.<\/p>\n
The decline in investment was primarily driven by the weakening\nproperty sector. Property investment plummeted by 13.7 per cent up to\nApril 2026, a deeper decline than the 11.2 per cent drop seen in the\nfirst three months of the year.<\/p>\n
In contrast, investment in the infrastructure and manufacturing\nsectors continued to grow by 4.3 per cent and 1.2 per cent,\nrespectively, during the first four months of the year.<\/p>\n
\u201cProperty investment in China has now been almost halved compared to\nits peak in 2021,\u201d said Lizzi Lee, an analyst at the Centre for China\nAnalysis. According to Lee, the ongoing decline in house prices could\nfurther worsen household balance sheets. The weakness in the property\nsector has also triggered large-scale job losses in the construction and\nrelated industries.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/chinas-economy-slumps-as-april-2026-retail-sales-slow-down-1780897472", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }