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The Chinese economy slowed down at the start of the second half of 2026, as official data showed a deceleration in key indicators. Industrial production decreased by 4.5% in July compared to the expected 4.8%, retail sales contracted by 0.6%, and fixed asset investment fell by 6.7% during the first seven months. Additionally, prices for new homes dropped by 3.2% year-over-year amid ongoing real estate stagnation, reflecting weak domestic demand and an increasing reliance on exports to compensate for subdued consumption and investment. Economists expect that the current conditions will require further economic stimulus measures by Chinese authorities to support the slowing growth.
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