Economic Growth Outlook - China's economy is expected to maintain a growth rate of around 5% in 2026, supported by internal structural upgrades and policy stability[1] - The global economic environment remains uncertain, but China's strategic path focuses on institutional certainty and long-term potential release[1] Structural Upgrades - The economic structure is evolving towards systematic optimization, with traditional, emerging, and future industries increasingly collaborating[2] - The focus of industrial competitiveness is shifting from cost advantages to innovation advantages, enhancing overall productivity[3] - There is a strengthening two-way cycle between industrial structure evolution and demand structure upgrades, fostering a robust domestic market[4] Consumption Dynamics - By 2024, household final consumption is projected to account for approximately 40% of GDP, indicating significant consumption potential[9] - The marginal propensity to consume among residents is around 66%, which is notably lower than in major developed economies, suggesting room for growth[9] - The retail sales growth rate for social consumer goods is expected to rise to 4.6% in 2026, driven by improvements in income and consumption structure[10] Policy Framework - Fiscal policy will focus on balancing growth, improving livelihoods, and managing risks, with a projected deficit rate of around 4% in 2026[18] - Monetary policy is expected to remain moderately loose, with the one-year Loan Prime Rate (LPR) forecasted to be around 2.80% in 2026[21]