50
China’s government has now set its growth target for 2026 at 4.5-5%. With China’s GDP deflator still in negative territory and ample policy space for more expansionary fiscal and monetary policy, this is achievable, but it will require boosting both consumption and investment spending.
BEIJING – Despite a fraught geopolitical environment and a US-led trade war in 2025, China achieved its growth target of 5%, with GDP reaching CN¥140.19 trillion ($20.4 trillion). The contributions to last year’s GDP growth from the three components of aggregate demand – final consumption, capital formation, and net exports – were 52%, 15.3%, and 32.7%, respectively.