BEIJING, Dec 11 (Reuters) - China signaled on Thursday it will rely on fiscal stimulus to manage the economy in 2026, pledging to maintain a “necessary” budget deficit and debt levels to shore up growth while tackling local government financial strains.

IMF managing director Kristalina Georgieva has said that China needs to fix “significant” imbalances in its economy, including deflation that has driven a depreciation of the renminbi and boosted exports at a time of rising trade tensions.

B aijiu, China’s favourite firewater, is losing its bite. This year retail prices have been hovering around the benchmark of 1,499 yuan ($212) a bottle, as set by Kweichow Moutai, a state-owned giant.

According to the World Bank’s latest China Economic Update, Advancing Reforms, Enhancing Prospects, growth is estimated at 4.9% in 2025 and projected at 4.4% in 2026, as existing headwinds are expected to persist.

Join us for a discussion on policy priorities emerged from China's annual Central Economic Work Conference and their implications for China’s economic trajectory in 2026.

China's premier says higher tariffs have dealt a “severe blow” to the world economy, even as China's own trade surplus has surged past $1 trillion.

China’s services activity expanded at the weakest pace in five months, a private survey showed, adding more evidence of sluggish consumer demand that’s putting further pressure on a slowing economy.

High on the to-do list will be ensuring the economy is ready for another round of tussles with the U.S., as signaled by the emphasis Chinese leaders have placed on reducing reliance on foreign technology.

The assessment is up from October’s forecast, with the fund citing government stimulus and lower tariffs as drivers.