China's economy grew at its slowest rate in 29 years in 2019. Caught in the middle of a punishing trade war with the U.S., China's GDP growth rate dropped from 6.6% in 2018 to 6.1% last year. This wasn't exactly surprising; although, last year's growth rate was towards the lower side of China's target range.

With the signing of a "Phase One" trade deal between the U.S. and China out of the way, analysts foresee a boost in business confidence this year. On Thursday, the team of analysts at Fitch Ratings raised its economic growth forecast for China from 5.7% to 5.9%. During a press briefing on the agreement, Chinese officials spoke about the benefits of the new deal for the economy saying it will give people more reason to be optimistic about the country's economic growth. "The signing of the phase-one trade deal is a signal that the situation is unlikely to deteriorate," said J.P. Morgan (JPM  ) Asset Management Global Market Strategist Chaoping Zhu.

While confidence may rise temporarily, there is some suspicious about whether or not China will follow through with the large purchases they promised to make in the agreement. The U.S. also still has tariffs on many Chinese goods to use as leverage in the remaining negotiations. Analysts from Citi (C  ), Nomura (NMR  ), and Invesco (IVZ  ) all agree that reaching its import targets will be a challenge for China.

In order to make up for a renewed slowdown in domestic demand and continued pressure from the U.S. trade war, China is planning to roll out stimulus measures to help the country maintain "stable growth", Ning Jizhe, China's statistical chief said in a news conference. The ruling party has made doubling gross domestic product and incomes as well as turning China into a "moderately prosperous" nation its top goals in the decade including 2020. China will need to see continued growth of at least 6% in the coming year to meet that goal, analysts agree. Indeed, policy sources told Reuters that Beijing has a lower growth target of 6% for this year in comparison to last year's 6-6.5%.

China plans to roll out several more support measures in the coming year. Already, Beijing has been encouraging banks to lend more, has cut taxes, and has allowed local governments to sell more bonds to fund infrastructure projects. Banks' reserve requirement ratios (RRR), or the amount of cash a bank is required to have in reserve, has been cut eight times since 2018 by China's central bank. Analysts predict China will continue to use and increase all of these approaches in the coming year.