China starts year with fastest increase in spending since 2022
Straitstimes·- China's government spending rose 6 percent in January-February 2026, the fastest start to any year since 2022, amid external uncertainties affecting the economy. - Despite a 1.4 percent decline in fiscal revenue and a significant deficit exceeding 1 trillion yuan, infrastructure spending grew 2.4 percent, marking its first increase since April 2025. - Challenges persist, including a 25 percent drop in land sale income and a 6.9 percent fall in individual income tax revenue, reflecting ongoing weaknesses in the economy.China economy shows surprise rebound even as Iran war risks spread
Straitstimes·- China's economic indicators in early 2026 exceeded expectations, with industrial production rising 6.3%, fixed-asset investment unexpectedly growing 1.8%, and retail sales increasing by 2.8%. - Despite this positive start, the ongoing conflict in the Middle East poses risks, particularly to global growth and inflation, impacting China's export-driven economy. - Authorities remain cautious, responding to these developments with a moderated fiscal stimulus plan, while adjusting growth targets to 4.5%–5%, the lowest since 1991.China says economy off to solid start but demand remains weak
Investinglive·- China's economy started 2026 positively, with industrial output and retail sales exceeding expectations. - However, officials warn of strong supply but weak demand, highlighting challenges from soft household spending and cautious business attitudes. - The government anticipates that policy measures will boost consumption, although further support may be needed to fully restore domestic demand.