Mint Quick Edit | China’s latest retail inflation number may be a relief but deflation still haunts its economy
Its GDP target for 2026 is just 4.5-5%, the lowest since 1991. Even if the Iran war’s oil shock helps it sustain positive inflation readings, its problem of overcapacity and under-consumption is likely to persist. A robust retail-spending stimulus may be Beijing’s best bet. Its 2026 fiscal deficit target, at 4% of GDP, isn’t too large.
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