People walk on a pedestrian bridge at Lujiazui financial district in Shanghai, China, on July 14, 2025. (File photo: Reuters/Go Nakamura)

China will push more proactive macro policies in 2026, Xi says

China's economy is expected to have grown to about 140 trillion yuan (US$20 trillion) in 2025, President Xi Jinping said on Wednesday (Dec 31).

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BEIJING: China will implement more proactive policies in 2026 aimed at supporting long-term growth, with its economy expected to meet Beijing's growth target of about 5 per cent this year, state media reported President Xi Jinping as saying on Wednesday (Dec 31).

The economy is expected to have grown to about 140 trillion yuan (US$20 trillion) in 2025, Xi said in his address at a New Year's tea party of top Chinese Communist Party officials, state broadcaster CCTV said.

"Our country's economy is expected to move forward under pressure ... showing strong resilience and vitality," Xi said in his speech.

The country will promote effective qualitative improvement and reasonable quantitative growth in the economy, Xi said, while maintaining social harmony and stability.

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China's economy is expected to meet its "around 5 per cent " growth target for 2025, even as momentum faltered towards year-end, weighed down by soft household consumption, persistent deflation and a prolonged property sector crisis.

Xi's message reinforces recent government pledges to roll out measures for boosting people's incomes and supporting consumption and investment to drive growth.

The central government has allocated 62.5 billion yuan from special treasury bond proceeds to local governments to fund the consumer goods trade-in scheme next year, confirming that Beijing would continue to spur household demand through the programme.

China's state planner has also released early investment plans for 2026, including two major construction projects, involving about 295 billion yuan in central budget funding, in its latest effort to boost investment and support economic growth.

Xi is expected to deliver his annual New Year's address tonight at 7pm (Singapore time).

Source: Reuters/lk(ht)

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