China economy at a glance

Latest figures for China: inflation, growth, interest rates, jobs, bond yields, debt and taxes. Updated 6 November 2026. Open China on the interactive map →

Key figures

Indicator	Latest	Period	Previous
Inflation (consumer prices, year on year)	0.9%	September 2026	0.8% August 2026
Core inflation (excluding food and energy)	1.0%	September 2026	1.0% August 2026
Real GDP growth (year on year)	4.5%	Q3 2026	4.3% Q2 2026
Policy rate (People's Bank of China)	1.40%	November 2026	1.40% October 2026
Unemployment rate	5.2%	September 2026	5.3% August 2026
10-year government bond yield	1.65%	October 2026	1.68% September 2026
Manufacturing PMI (NBS official manufacturing PMI (private RatingDog/S&P Global PMI: Jun 51.7, Jul 50.9, Aug 51.5, Sep 52.1))	49.3	October 2026	50.1 September 2026
Retail sales (year on year)	1.1%	September 2026	0.4% August 2026
Industrial production (year on year)	5.5%	September 2026	5.2% August 2026
Wages (year on year)	5.3%	Q3 2026
House prices (year on year)	−2.8%	Q3 2026	−3.3% Q2 2026
Stock market (Shanghai Composite)	3,649	November 2026	−6.2% over 12 months

Questions and answers

What is the inflation rate in China?

China's annual inflation rate was 0.9% in September 2026, up from 0.8% in August 2026.

What is the interest rate in China?

The People's Bank of China 7-day reverse repo rate; 1-year LPR 3.0%, 5-year LPR 3.5%, both unchanged for 17 months to Oct 2026 is 1.40% (as of November 2026).

How fast is China's economy growing?

China's real GDP grew 4.5% year on year in Q3 2026. The IMF's October 2026 World Economic Outlook forecasts growth of 4.5% in 2026 and 4.0% in 2027.

What is the unemployment rate in China?

China's unemployment rate was 5.2% in September 2026, down from 5.3% in August 2026.

What is China's 10-year government bond yield?

China's 10-year government bond yield averaged 1.65% in October 2026.

How much government debt does China have?

China's government debt is about 98.6% of GDP (latest annual figure), with a budget deficit of 7.9% of GDP.

What is China's credit rating?

China's sovereign credit ratings: S&P A+, Moody's A1, Fitch A.

What is the VAT rate in China?

China's standard VAT rate is 13% (2026 rules).

What is the corporate tax rate in China?

China's corporate income tax rate is 25.0% (2026 rules).

Who leads China?

China is led by Xi Jinping, President and CCP General Secretary (head of state); Li Qiang, Premier (head of government). Next election: No competitive national elections; CCP Central Committee plenum 26-29 Oct 2026; 21st Party Congress due 2027.

Outlook

The World Bank (Oct 2026) raised its 2026 growth forecast to 4.5% and sees 4.3% in 2027, and the IMF also projects about 4.5%, near the low end of Beijing's 4.5-5% target. Upside risks come from continued strength in high-tech and AI-linked exports, more fiscal support (which S&P expects) and a durable US truce. Downside risks are an ongoing property slump, very weak household spending, rising protectionism in the EU and US, and a possible reversal of the global AI investment cycle.

Why China matters for the world economy

China's export machine is the dominant external force: exports rose 36% y/y in September 2026 and the Jan-Sep surplus approached $940bn, led by semiconductors, AI hardware and cars, which keeps goods prices low worldwide but squeezes manufacturers in the EU, Japan, Korea, Mexico and Southeast Asia and fuels trade-defence measures. Weak domestic demand and a shrinking property sector cap its appetite for iron ore, coal and other bulk commodities, a headwind for Australia, Brazil and other resource exporters. Its control of rare earths and its central role in electronics supply chains give Beijing leverage in negotiations with Washington, while a tightly managed yuan and record-low bond yields make it a source of deflationary pressure rather than of financial contagion.

Politics

Xi Jinping's leadership is unchallenged, and the party's October 2026 plenum is focused on internal discipline rather than economic redirection. Policy combines export-led growth from high-tech manufacturing with cautious, incremental support for a property sector still in deep decline. A trade truce with Washington, extended in September 2026 to 10 January 2027, keeps the risk of renewed tariff escalation on the agenda.

System: One-party socialist republic led by the Chinese Communist Party.

Economy and taxes

GDP: US$19,626 billion
Population: 1,404.9 million
Government debt: 98.6% of GDP
Budget balance: −7.9% of GDP
Current account: 3.7% of GDP
Exports: 21.1% of GDP
Main exports: Electronics and electrical machinery, semiconductors and AI-related hardware, electric vehicles and autos, industrial machinery, batteries and solar equipment, steel, textiles
Top export markets: United States (11.1%), Hong Kong (8.9%), Vietnam (5.3%), Japan (4.2%), South Korea (3.8%)
IMF growth forecast: 4.5% in 2026, 4.0% in 2027
IMF inflation forecast: 1.0% in 2026, 1.4% in 2027
Currency: CNY
Freelancer tax: A self-employed person earning the average wage (CNY 129,441 a year) pays about 4.2% of it in income tax and social contributions (2026 rules)
Top income tax rate: 45.0%
Gold reserves: 2,346.4 tonnes (June 2026)
Energy self-sufficiency: 77% (2024)

Recent news

4 November 2026 China confirms talks on a possible Trump-Xi-Putin meeting at its APEC summit Meduza
Beijing said for the first time it is in contact with the parties about a three-way leaders' meeting, which could take place at the APEC summit China hosts in Shenzhen on 18-19 November. Trump has said he is ready to meet but wants to discuss nuclear arms rather than the war in Ukraine.
3 November 2026 Yuan hits a four-year high, and the central bank moves to slow its rise Trading Economics
The offshore yuan strengthened to about 6.64 per dollar on 2 November, its strongest since June 2022. The PBoC then raised banks' foreign-currency reserve requirement from 4% to 6% from 15 November, draining dollars from the onshore market, and the yuan eased back to about 6.68.
31 October 2026 China's official factory index slips back into contraction Trading Economics
The NBS manufacturing PMI fell to 49.3 in October from 50.1, its lowest since July and below the 50.0 expected, as new orders and export orders shrank. Analysts blamed fading demand after the Golden Week holiday and softer overseas sales, though AI-related trade held up.
30 October 2026 China's central bank moves toward an overnight rate as its main policy tool The Standard (Reuters)
The PBoC said it will run overnight reverse repos every business day at a fixed 1.25%, the first time it has published that rate, below the 1.4% seven-day rate. Analysts called it the clearest step yet toward a Fed-style system that can pass lower borrowing costs through to the economy.
29 October 2026 Party plenum ends with a discipline drive as purges thin its ranks The Star (AFP)
The Communist Party's Central Committee closed its 26-29 October plenum with a resolution to tighten party governance and fight graft, and promoted anti-corruption chief Zhang Shengmin to the Politburo. Turnout was the lowest since 1976 after purges, and the next party congress is due in 2027.
27 October 2026 Record sums pour into China stock funds as state-linked buyers step in Caixin Global
Broad index-tracking ETFs drew 153.4bn yuan in the week to 23 October, the biggest weekly inflow of 2026, after a sharp fall in Chinese shares. Analysts link the late-day buying to large state-backed investors, but brokers say it is unclear whether it will bring a lasting recovery.

Headlines and summaries are compiled daily from the linked reports with AI assistance.