China Growth Set to Slow Further in 2025, World Bank Says
World Bank forecasts China’s GDP growth to drop to 4.3% in 2025 from 4.8% in 20242024 estimate revised up 0.3% on stimulus measures, but 2025 projection unchangedWeak consumer spending, property market woes, aging population cited as challengesRecent stimulus focused on supply side, may not boost consumer demandDeeper structural reforms needed for long-term growth, World Bank economist saysRest of East Asia/Pacific region expected to grow 4.7% in 2024, 4.9% in 2025Region urged to find domestic growth drivers as China’s economic influence wanes
Key quote: “The question is whether [the stimulus] can actually offset consumer concerns about declining salaries, concerns about declining property incomes and fears about falling ill, growing old, becoming unemployed,” – Aaditya Mattoo, World Bank
This article was written by Eamonn Sheridan at www.forexlive.com.
