China's economy enters 2026 on firmer footing as risks build
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Published on March 16, 2026.
China's factory output growth quickened in January-February, while retail sales rebounded, marking the quickest growth since September last year. Industrial output rose by 6.3% from the previous year, beating a 5% forecast in a Reuters poll. Retail sales also rose by 2.8%, marking their biggest gain since October last year, driven by the country's longest Lunar New Year holiday in February. Despite this, analysts warn that China faces significant challenges as it attempts to foster sustainable longer-term growth. The Middle East conflict has contributed to high energy prices and unsettled global trade.
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