Feature Article | Has the Economy Recovered?

【Caixin】 After going through the pandemic, China’s economy has already undergone several years of continuous recovery. Since 2026, there have been both signs pointing to a better economy and signs of weakness easing at the same time—some people have become optimistic, while others quietly remain pessimistic. Overall, how should we view the current economic situation? How far has the transition between old and new growth drivers in the economy progressed? What have we done right, and what still needs continued effort?

The domestic gross domestic product (GDP) in the first quarter of 2026 recorded a 5% year-on-year growth rate. Exports and industrial production have remained in rapid growth at high levels, increasing by 14.7% and 6.1% respectively in the first quarter—still serving as the engines driving economic growth. Fixed asset investment, which saw a rare decline in 2025, turned positive in the first quarter of 2026, with a marginal year-on-year increase of 1.7%.