China's economy showed signs of a sharp slowdown in early 2026, as fixed-asset investment resumed declines in April, according to data from the National Bureau of Statistics. Gross domestic product grew 4.5% in the first quarter of 2026, down from 5.2% in the previous quarter, missing analysts' expectations.
The decline in investment, which fell 2.1% year-on-year in April, was driven by a continued slump in the property sector and weaker manufacturing activity. Real estate investment dropped 8.3% in the first four months of 2026 compared to the same period last year, the bureau reported.
Industrial production grew 5.4% in April, slightly below the 5.6% forecast, while retail sales rose 3.8%, missing the 4.2% estimate. The unemployment rate edged up to 5.3% in April from 5.2% in March, adding pressure on policymakers.
The Chinese government has announced new stimulus measures, including cuts to reserve requirement ratios and increased infrastructure spending, to support growth. However, analysts remain cautious, citing weak consumer confidence and global trade tensions.
