WB raises China's economic growth forecast

Over the weekend, the World Bank raised its forecast for China's economic growth in 2024 and 2025.

In a report over the weekend, the World Bank raised its forecast for China's economic growth in 2024 and 2025, but warned that low confidence among households and businesses, along with difficulties in the real estate sector, will continue to weigh on the economy next year.

The world’s second-largest economy has struggled this year, largely due to a property crisis and weak domestic demand. Expected tariff increases on Chinese goods when US President-elect Donald Trump takes office in January could also weigh on growth.

“Addressing challenges in the real estate sector, strengthening social safety nets and improving local government finances will be essential to unlocking a sustainable recovery,” said Mara Warwick, World Bank Country Director for China.

WB nâng dự báo tăng trưởng kinh tế của Trung Quốc

China Railway workers assemble a pipe drilling machine at the construction site of an underground railway station in Huzhou city, Zhejiang province, China. Photo: Reuters

“ It is important to balance short-term growth support with long-term structural reforms ,” she stressed in a statement.

Thanks to the impact of recent policy easing and short-term export strength, the World Bank forecasts China's GDP growth at 4.9% this year, up from its June forecast of 4.8%.

Beijing has set a growth target of around 5% this year and has said it is confident it will meet it.

Although growth in 2025 is also expected to slow to 4.5%, this is still higher than the World Bank's previous forecast of 4.1%.

Slowing household income growth and negative wealth effects from falling house prices are expected to continue to weigh on consumption through 2025, the World Bank said.

To boost growth, Chinese authorities have agreed to issue a record 3 trillion yuan ($411 billion) in special treasury bonds next year, Reuters reported this week.

The figures will not be officially announced until the annual session of China's parliament, the National People's Congress, in March 2025 and could change before then.

Although the housing regulator will continue efforts to prevent a further downturn in China's property market next year, the World Bank said the sector is not expected to recover until the end of 2025.

Source: https://congthuong.vn/wb-nang-du-bao-tang-truong-kinh-te-cua-trung-quoc-366946.html