China Likely to Chase 5% GDP Growth in 2026 in Bid to End Deflation

China is likely to stick to its current annual economic growth target of around 5% next year, government advisers and analysts said, a goal that would require authorities to keep fiscal and monetary spigots open as they seek to snap a deflationary spell.

The target would be part of Beijing's efforts to start a new five-year plan on a strong footing and shake off the effects of a prolonged property slump, weak consumer demand, excess factory capacity and declines in infrastructure-led investment.

While top leaders have signaled a shift toward supporting household consumption and restructuring the economy over the next five years, such measures may take time to deliver results, putting the immediate focus on fiscal and monetary support...

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