China’s economy stayed resilient in early 2026, supported by high-tech investment, exports and policy measures.
The World Bank projects growth easing to 4.4 per cent in 2026 and 4.3 per cent in 2027 as domestic demand remains soft.
Exporters and sourcing teams face a steadier export backdrop but should watch property, energy and consumption risks.
For fashion retail and manufacturing supply chains, the outlook points to a market where external demand and policy support remain important while consumption-led rebalancing progresses gradually.
It stated the policy support, high-tech investment and buffers against global energy supply disruptions partly offset weaker domestic demand in the second quarter. It added that risks to the outlook are broadly balanced: lower oil prices and reduced uncertainty around global energy supply have helped, but renewed volatility remains possible, while a deeper property downturn could weigh further on consumer spending and real estate-linked investment.
Tatiana Rosito, division director for China, Mongolia and Korea, World Bank said: “Further strengthening the social safety net would be a key measure to boost consumption. Raising benefit levels, extending coverage to informal workers, and providing access based on residence could give households the confidence to spend more rather than save.”
The update also said China’s low-carbon transition is changing jobs and labour-market needs, with demand expanding for green technical skills as well as transferable capabilities such as systems thinking, adaptive learning and digital skills.
These skills command sizeable wage premiums, but skill gaps are limiting inclusive employment gains.
For textile and apparel manufacturers and suppliers, the report’s findings underline the need to monitor consumption, energy and workforce-skill trends alongside export demand.
Fibre2Fashion News Desk
