China sees slowest economic growth in three years, despite surges in exports

China's economy in the last quarter grew by the slowest rate in three years, which is part of a larger slump economic forecasts had expected. 

The National Bureau of Statistics on Wednesday said the economy grew by 4.3% in the second quarter compared to a year ago, and that was down from 5% growth in the first quarter, the New York Times reported. While forecasters had expected slower growth, the pace in the second quarter fell beneath expectations. 

China has seen explosive growth in the manufacturing of computer chips and electric vehicles, but a long-running property crisis drove large drops in construction, which is hitting domestic economic growth. Jobs outside factories are becoming scarce, and incomes aren't growing. Retail sails fell in May for the first time since the end of the COVID lockdowns in 2022. Though they recovered slightly in June. 

A government report released on Tuesday showed exports surging by 27% in June, compared to the previous year. This was driven primarily by shipments of computer chips, batteries and vehicles. But the country's promising export figures hide sluggishness in other parts of its economy.