The International Monetary Fund has projected that China’s economy will grow by 4.5 per cent this year, marking an upward revision of 0.3 percentage points from its October forecast, as exports and fiscal stimulus help sustain momentum.

China’s economy expanded by 5 per cent in 2025, demonstrating resilience despite multiple external shocks and domestic pressures. However, the IMF cautioned that the world’s second-largest economy faces mounting structural challenges, including subdued domestic demand and deflationary pressures linked to a prolonged property sector downturn and a weak social safety net.

The Fund emphasised that China cannot rely indefinitely on exports to power durable growth and said pivoting toward consumption-led expansion should remain the top policy priority. Policymakers have already adopted a more expansionary fiscal stance in 2025, introduced targeted social subsidies and eased monetary policy.

The International Monetary Fund (IMF) has projected China’s economy will grow 4.5 per cent this year, up 0.3 percentage points from its October forecast, supported by exports and fiscal stimulus.
However, the IMF warned that weak domestic demand and property sector challenges persist, urging stronger social spending and reforms to shift growth toward consumption and reduce reliance on exports.

Looking ahead, China’s 15th Five-Year Plan for 2026-2030 prioritises boosting consumption. Reforms such as gradually raising the retirement age and easing household registration, or hukou, restrictions are expected to support labour force participation and domestic spending.

The IMF recommended a comprehensive macroeconomic package including additional fiscal stimulus, further monetary easing and greater exchange rate flexibility. It also urged stronger social protection spending, more progressive taxation and reduced reliance on industrial policies to rebalance growth toward domestic consumption.

With China contributing roughly 30 per cent to global growth, the IMF noted that a more balanced Chinese economy would strengthen global economic stability.

Fibre2Fashion News Desk (CG)

A high-level meeting was held in New Delhi to review the next steps for translating the market-access gains under the Trade and Economic Partnership Agreement (TEPA) into concrete business partnerships and investment commitments between India’s Minister of Commerce and Industry Piyush Goyal and Guy Parmelin, President of the Swiss Confederation.

Highlighting India’s growth trajectory, Goyal noted that under Prime Minister Narendra Modi’s leadership, India is now the world’s fourth-largest economy, with an estimated GDP of $4.51 trillion in 2026. He underscored India’s scale, sustained reform momentum, a large and expanding consumer market, a deepening industrial base, and continued focus on ease of doing business, digitisation, and infrastructure-led competitiveness, which together provide a stable and scalable platform for long-term partnerships. The minister encouraged greater Swiss investment in India, particularly in sectors where Switzerland has established niche technological strengths. He also underlined India’s role as a reliable global supplier of affordable, high-quality medicines and vaccines, and called for deeper cooperation in R&D, biotechnology, specialty pharmaceuticals, and advanced therapeutics.

The meeting reaffirmed India and Switzerland’s commitment to expand economic and strategic cooperation under the India–EFTA Trade and Economic Partnership Agreement (TEPA). In the context of the AI Impact Summit, both sides noted the need to balance innovation with responsibility, and recognised TEPA as an enabling framework for technology and innovation collaboration, including precision engineering, health sciences, renewable energy, and R&D, the Ministry of Commerce and Industry said in a press release.

TEPA is India’s first trade agreement with the EFTA economies (Iceland, Liechtenstein, Norway, and Switzerland), which are characterised by high-income markets, exacting standards, and strong demand for quality products and services. It is also India’s first operational trade arrangement with a European economic bloc, complementing our engagements with the European Union and the United Kingdom. The agreement is expected to support deeper integration of ‘Make in India’ products into European value chains, with Switzerland as an important gateway market, while expanding opportunities across farmers and fishermen, forest-based communities, workers, women and youth, as well as MSMEs and professionals.

Under TEPA, EFTA has offered improved market access on 92.2 per cent of its tariff lines, covering 99.6 per cent of India’s exports, along with tariff concessions on processed agricultural products. The agreement is expected to create opportunities across Indian states.

Fibre2Fashion News Desk (RR)

Japanese sportswear company ASICS Corporation has posted record results for fiscal 2025 (FY25) ended December 31, with net sales rising 19.5 per cent year on year (YoY) to ¥810.9 billion (~$5.29 billion) and operating profit climbing 42.4 per cent to ¥142.5 billion (~$930 million).

Ordinary profit increased 50.4 per cent to ¥139.3 billion, while profit attributable to owners of parent surged 54.7 per cent to ¥98.7 billion. Operating margin improved to 17.6 per cent from 14.8 per cent a year earlier, as gross profit rose 21.6 per cent to ¥460.6 billion, supported by both higher sales and improved gross margin. On a currency-neutral basis, net sales grew 19.4 per cent and operating profit rose 42.2 per cent.

ASICS has posted record FY25 results, with net sales up 19.5 per cent to ¥810.9 billion (~$5.29 billion) and operating profit rising 42.4 per cent to ¥142.5 billion (~$930 million), lifting margin to 17.6 per cent.
SportStyle and Onitsuka Tiger each topped ¥100 billion (~$653 million), while Europe and Japan drove regional gains.
Cash fell on buybacks and debt repayment.

Earnings per share (EPS) came in at ¥138.13 (diluted: ¥137.96), with return on equity at 39.1 per cent. The company reported growth across all categories, with SportStyle and Onitsuka Tiger each surpassing ¥100 billion (~$653 million) in net sales for the first time and both delivering growth of more than 40 per cent versus the previous fiscal, ASICS said in a press release.

Performance Running remained the largest category, with net sales up 11.2 per cent to ¥363.5 billion and category profit rising 21.6 per cent to ¥86 billion, driven by strength in Europe and Southeast and South Asia.

Core Performance Sports delivered net sales growth of 9.4 per cent to ¥86 billion and category profit growth of 18.9 per cent to ¥16.8 billion, helped by an improved gross margin.

Apparel and Equipment grew 10.5 per cent to ¥42.1 billion, while category profit rose 36.9 per cent to ¥5.9 billion, again reflecting margin improvement alongside higher sales.

SportStyle was the standout on scale-up, with net sales jumping 43.6 per cent to ¥141.3 billion and category profit increasing 53.8 per cent to ¥41.3 billion, supported by broad-based regional demand.

Onitsuka Tiger recorded net sales growth of 43 per cent to ¥136.5 billion and category profit growth of 58.7 per cent to ¥51.5 billion. The company expanded Onitsuka Tiger’s presence in Europe, opening flagship stores in Barcelona, London, and Paris, as the brand works to establish itself as a Japanese luxury lifestyle label.

Japan net sales rose 22.7 per cent to ¥204.2 billion, with segment profit surging 61.7 per cent to ¥44.7 billion, supported by strong Performance Running and Onitsuka Tiger demand. It highlighted inbound tourist spending as a key driver, with inbound sales up 84 per cent.

Europe posted net sales growth of 25.9 per cent to ¥225.8 billion, while segment profit increased 45.3 per cent to ¥36.7 billion on strength across categories. Greater China net sales increased 19.9 per cent to ¥120.5 billion and segment profit rose 29.8 per cent to ¥25.1 billion, supported by margin gains and broad-based demand.

Southeast and South Asia grew 33.4 per cent to ¥49.8 billion, with segment profit up 47.6 per cent to ¥10.9 billion. The comapny opened its first ASICS flagship store in New Delhi in October. North America net sales rose 4.6 per cent to ¥141.2 billion, while segment profit jumped 42.1 per cent to ¥16 billion.

Oceania net sales rose 15.5 per cent to ¥49.6 billion, while segment profit edged up 3.8 per cent to ¥7.9 billion.

Total assets increased 13 per cent to ¥586.5 billion as of December 31, 2025, while net assets rose 16.4 per cent to ¥273.4 billion, lifting the equity-to-asset ratio to 46.3 per cent from 44.9 per cent.

ASICS’ current assets rose 11 per cent to ¥409.9 billion, mainly due to higher merchandise and finished goods. Non-current assets increased 17.8 per cent to ¥176.5 billion, reflecting increases in machinery, equipment and vehicles, as well as right-of-use assets.

Cash and cash equivalents fell to ¥112.2 billion from ¥127 billion, as operating cash flow of ¥109.9 billion was offset by investing outflows of ¥29.4 billion and financing outflows of ¥105.9 billion.

For FY26, ASICS forecast net sales of ¥950 billion (up 17.2 per cent) and operating profit of ¥171 billion (up 20 per cent), with operating margin expected to improve to 18 per cent. Ordinary profit is projected at ¥165 billion (up 18.5 per cent) and profit attributable to owners of parent at ¥110 billion (up 11.4 per cent), implying EPS of ¥153.91. On a currency-neutral basis, it expects net sales growth of 16.7 per cent and operating profit growth of 19.7 per cent.

By category, it expects Performance Running sales of ¥415 billion, SportStyle sales of ¥205 billion, and Onitsuka Tiger sales of ¥152 billion in FY26. It also said it will rename ‘Apparel and Equipment’ to ‘Apparel’ from FY26 and will disclose ‘Walking’ as a separate category (forecast: ¥16.2 billion, down 1.5 per cent).

Regionally, the company’s FY26 outlook assumes growth in Europe (¥281 billion), North America (¥168.0 billion), Greater China (¥140 billion), Oceania (¥58 billion), and Southeast and South Asia (¥59.0 billion), while Japan is forecast to decline to ¥180 billion.

The company said 2026 will be a launchpad year ahead of its next mid-term plan starting in 2027, with priorities including innovation-led Performance Running growth, broader category expansion beyond tennis in Core Performance Sports, and scaling SportStyle while maintaining sustainable growth. For Onitsuka Tiger, it plans to further solidify its position in Europe and advance preparations to re-enter the US market from 2027 onwards, added the release.

Fibre2Fashion News Desk (SG)