China's economy started the year on a strong footing, with factory output and consumption exceeding forecasts. Retail sales rose by 2.8% from the previous year, a significant slowdown from the 4% growth period in 2025. Industrial output also exceeded expectations, largely due to strong external demand. Investment in real estate development also declined, with an 11.1% fall in January and February. The Chinese government has reduced its annual economic goals for 2026 to a mere 4.5%, the lowest level on record.