China's economy is grappling with the significant challenge of weak consumer demand. Data from second-quarter GDP growth show that gross capital formation, final consumption expenditure, and net exports contributed 1.9, 2.2, and 0.6 percentage points to economic growth, respectively.
Notably, the role of consumption in driving economic growth has waned, declining by 1.7 percentage points from the first quarter. This slowdown first emerged in the second quarter of last year and has been falling since.