KPMG – Ten Macroeconomic Trends in 2026

This report analyzes China's macroeconomic trends and outlook for the year 2026.

It highlights steady economic progress in 2025 driven by diversified trading partnerships, competitive exports, and strong global demand for AI-related products. The report also discusses accelerated domestic industrial transformation due to breakthroughs in homegrown AI technology and government emphasis on private sector innovation. Persistent challenges include insufficient domestic demand, pressure on the real estate market, contraction in household wealth, and high debt levels among enterprises and local governments. Additionally, deflationary pressures persist due to supply-demand imbalances. The Central Economic Work Conference outlined an economic agenda for 2026 focusing on policy tools, macroeconomic governance, and alignment with the 15th Five-Year Plan.