The Central Economic Work Conference held from December 10 to 11 serves as the clearest indicator of economic direction for 2026. Key measures proposed at the high-profile meeting—such as implementing income growth plans for urban and rural residents, stabilizing investment, directing financial institutions to bolster domestic demand, technological innovation, and support for small and micro enterprises, and accelerating the clearance of overdue corporate payments—will directly impact household and corporate finances.
The conference reviewed achievements, analyzed economic conditions, and outlined a roadmap for 2026. The overarching tone remains "seeking progress while maintaining stability," with added emphasis on "quality and efficiency." Macro policies will see more proactive fiscal measures and appropriately accommodative monetary policies. Eight key tasks were highlighted, all aimed at ensuring a strong start to the 15th Five-Year Plan—stabilizing the economy, improving livelihoods, and sustaining growth momentum.
1. **The "Five Musts" for Economic Work** A successful economic start in 2026 hinges on adhering to the "Five Musts": fully unleashing economic potential, balancing policy support with reform and innovation, ensuring both flexibility and effective regulation, integrating investment in physical and human capital, and strengthening internal resilience against external challenges. Dong Yu, Executive Vice President of Tsinghua University’s China Development Planning Research Institute, noted that these principles serve as both a summary of past efforts and a guide for future actions.
2. **More Proactive Macro Policies** Macro policies will play a crucial role in steadying economic growth. The conference called for "more proactive and effective macro policies," maintaining an expansionary fiscal stance and appropriately loose monetary policy. Specific measures include maintaining necessary fiscal deficits, standardizing tax incentives and subsidies, and flexibly utilizing tools like reserve requirement ratio (RRR) and interest rate cuts.
Policy coordination will be prioritized to enhance foresight, precision, and synergy. Luo Zhiheng, Chief Economist at Yuekai Securities, emphasized that the conference broadened the scope of policy consistency assessments to include both economic and non-economic policies, helping stabilize market confidence through institutionalized arrangements.
3. **Expanding Domestic Demand as a Top Priority** "Strengthening domestic demand and building a robust domestic market" topped the list of key tasks. With "supply outstripping demand" as a pressing issue, boosting consumption and investment will be central. Policies include income growth plans for urban and rural residents and increasing central budget investment to halt the decline in fixed-asset investment.
Huang Weiting, Deputy Director of the Macroeconomic Research Department at the National Development and Reform Commission, noted that major projects under the 15th Five-Year Plan will provide critical support for investment recovery.
4. **More Tangible Social Safeguards** The conference stressed "prioritizing people's livelihoods" and enhancing public welfare. Employment support will focus on college graduates, migrant workers, and flexible workers, while expanding access to social insurance. Other measures include increasing high school and university enrollment, rolling out long-term care insurance, and stabilizing birth rates.
The plan also addressed risks in real estate, local government debt, and extreme weather, calling for measures like stabilizing the property market, curbing hidden debt, and improving flood control infrastructure in northern regions.
The 2026 economic blueprint combines macro-level precision with micro-level warmth, ensuring resilience through steady progress.
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