FX.co ★ Easing trade friction with US elevates China’s economic outlook

Standard Chartered has revised its forecast for China’s economic growth in 2026, raising the estimate from 4.3% to 4.6%. The primary drivers of this upgrade are the resilience of the export sector and steady productivity growth within the country.

Analysts project that Chinese goods will maintain their competitive edge in the global market. This outlook is supported by reduced trade tensions with the United States following the achievement of an agreement. Additionally, an improvement in aggregate factor productivity is expected to further boost the economy.

Bank experts estimate that the Chinese government will set an official GDP growth target range for 2026 between 4.5% and 5.0%, reflecting expectations of stabilization for the world's second-largest economy.