China's Broad-Based Slowdown Bolsters Case For Additional Stimulus
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ING Economic and Financial Analysis4.96K FollowersFollow5ShareSavePlay(12min)CommentsSummaryChina’s economic momentum continues to weaken in the final stretch of the year, as all key activity data disappointed in November.Policymakers have lots of work to do if domestic demand is going to drive growth in 2026 as planned.China's fixed asset investment (FAI) growth fell to -2.6% YoY ytd through November, down from -1.7% YoY ytd from a month ago. TexBr/iStock via Getty Images By Lynn Song, Chief Economist, Greater China Retail sales growth falls to lowest since 2022 as trade-in policy turns from tailwind to headwind China’s retail sales significantly underperformed in November, falling to 1.3% year-on-year from 2.9% in October. ThisThis article was written byING Economic and Financial Analysis4.96K FollowersFollowFrom Trump to trade, FX to Brexit, ING’s global economists have it covered. Go to ING.com/THINK to stay a step ahead. We’re sorry we can’t reply to individuals' comments.Content disclaimer: The information in the publication is not an investment recommendation and it is not investment, legal or tax advice or an offer or solicitation to purchase or sell any financial instrument.This publication has been prepared by ING solely for information purposes without regard to any particular user's investment objectives, financial situation, or means. For our full disclaimer please click here.Quick InsightsHow is the shift in China’s trade-in policy impacting retail sales and outlook?The trade-in policy, once a consumption tailwind, now depresses YoY retail sales growth, notably in household appliances; further pressure is likely unless new stimulus emerges.What are the key risks to China’s investment outlook for 2026?Public investment may recover with policy support, but private investment remains uncertain; persistent declines and policy crackdowns on redundant projects are material risks.How do property price declines affect China’s domestic demand strategy?Falling property prices erode household wealth and confidence, undermining consumption and complicating efforts to pivot toward domestic demand-led growth.Recommended For You