China's first batch of hard economic activity data for 2026 exceeded downbeat forecasts, reports Seeking Alpha. Analysts note more work is required to support domestic growth amid rising inflation risks.
China released its initial hard economic activity figures for 2026, surpassing the rather downbeat expectations, according to a Seeking Alpha analysis by Lynn Song, Chief Economist, Greater China. The data provides some relief after a period of soft domestic demand, partly driven by a protracted downturn in the property sector. Property prices continued to decline, though at a slower pace than before, highlighting ongoing challenges in this key area of the economy. Song emphasizes that further efforts are needed to bolster the domestic economy and meet this year's growth targets, especially with inflation risks picking up. Attention now turns to upcoming policy measures in China and their adequacy in achieving these goals. For the time being, the firm holds its forecast of 4.6% year-over-year GDP growth for 2026.
