Core Viewpoint - The article discusses the implications of the recent economic work conference in China, highlighting the focus on domestic demand and structural reforms to stimulate economic growth, with an optimistic outlook for the economy in the coming years [3][5]. Economic Growth Predictions - The World Bank has adjusted its forecast for China's economic growth, predicting a rate of 4.9% in 2025 and 4.4% in 2026, both up by 0.4 percentage points from previous estimates [3]. - The emphasis on domestic demand as a driver of growth aligns with the signals from the economic work conference, which prioritizes building a strong domestic market [5]. Trade Performance - China achieved a record trade surplus of $1 trillion in the first 11 months of the year, despite a significant drop in exports to the U.S. by 18.3% [6][8]. - Exports to Europe, Southeast Asia, and Africa increased by 8.9%, 14.6%, and 27.2% respectively, indicating a successful shift in export structure [8]. - The systematic upgrade of China's manufacturing capabilities has been a key driver of this export growth, contributing nearly 45% to the increase in exports over the past five years [10]. Fiscal and Monetary Policy - The economic work conference emphasized a "loose monetary policy," focusing on lowering interest rates and easing credit conditions to stimulate economic recovery [12]. - A more proactive fiscal policy is expected, with a projected fiscal deficit rate of around 4% for 2026, maintaining the same level as in 2025 [15]. - The conference highlighted the importance of fiscal policy in supporting economic recovery, particularly in addressing local government financial challenges and funding infrastructure projects [15][17]. Economic Indicators and Consumer Impact - The Consumer Price Index (CPI) rose by 0.7% year-on-year in November, indicating a potential economic recovery and signaling a possible turning point for the economy [21]. - The anticipated easing of mortgage rates due to loose monetary policy may alleviate repayment pressures for homebuyers, while consumer spending could benefit from reduced restrictions and potential subsidies [21][23]. - Support for new infrastructure, renewable energy, and high-end manufacturing is expected to create numerous skilled job opportunities, enhancing stability for small and medium enterprises [23].