U.S. Dollar Slides Toward Biggest Annual Loss Since 2017 as 2026 Risks Loom 
U.S. Dollar Steadies Ahead of Fed Minutes as Markets Eye Policy Divisions 
South Korea Inflation Rises to 2.3% in December, Matching Market Expectations 
South Korea Factory Activity Returns to Growth in December on Export Rebound 
Asian Currencies Trade Flat as Dollar Weakens in Thin New Year Trading 
Oil Prices Slip Slightly as Markets Weigh Geopolitical Risks and Supply Glut Concerns 
China Manufacturing PMI Rebounds in December, Offering Boost to Economic Growth Outlook 
Asia Manufacturing PMI Rebounds as Exports and Tech Demand Drive Growth into 2026 
U.S. Stock Index Futures Steady as Markets Await Fed Policy Clues in Holiday-Thinned Trade 
Gold Prices Rebound in Europe as Geopolitical Tensions and Fed Outlook Support Bullion 
U.S. Stock Futures Slip as Year-End Trading Turns Cautious 
Forex Markets Hold Steady as Traders Await Fed Minutes Amid Thin Year-End Volumes 
Federal Reserve Begins Treasury Bill Purchases to Stabilize Reserves and Money Markets 
Trump Delays Tariff Increases on Furniture and Cabinets for One More Year 
Wall Street Ends Mixed as Tech and Financial Stocks Weigh on Markets Amid Thin Holiday Trading 
Asian Markets End Year on AI Optimism as Precious Metals and Currencies Shine 
China’s economic growth likely cooled to a three-year low in the fourth quarter, reflecting weaker domestic demand even as the full-year performance stayed close to Beijing’s official target. According to a Reuters poll, gross domestic product (GDP) growth is estimated at 4.4% year-on-year in the October–December period, down from 4.8% in the third quarter and the slowest pace since late 2022, when pandemic restrictions were still in place.
Despite these headwinds, China’s economy showed notable resilience in 2025. Smaller-than-expected U.S. tariff hikes and exporters’ success in diversifying toward non-U.S. markets helped cushion the impact of global trade tensions. As a result, policymakers were able to rely on relatively modest stimulus measures. Full-year GDP growth is forecast at 4.9%, broadly meeting the government’s target of around 5%, following 5.0% growth in 2024.
Exports and manufacturing remained key growth drivers. China reported a record trade surplus of nearly $1.2 trillion in 2025, fueled by strong overseas demand. However, this heavy reliance on external markets highlights deeper structural imbalances. Weak household consumption, a prolonged property sector downturn, and persistent deflationary pressures continue to drag on domestic demand.
On a quarterly basis, economic growth is expected to have slowed to 1.0% in the fourth quarter from 1.1% in the previous period. Looking ahead, uncertainty is rising. The 2026 outlook is clouded by growing global protectionism and unpredictable U.S. trade policies, with China’s growth projected to ease further to around 4.5%.
In response, China’s central bank has begun easing policy through targeted interest rate cuts and signaled openness to broader monetary support. Still, analysts warn that stimulus alone may not be enough. Economists argue China must accelerate its shift toward consumption-led growth by boosting household incomes, strengthening the social safety net, and addressing excess industrial capacity.
Without deeper structural reforms, China’s economy may struggle to sustain stable growth amid mounting global and domestic pressures.
