The World Bank has raised its forecast for China’s economic growth in 2024 and 2025, but warned that a property crisis and subdued consumer confidence will continue to weigh on the country’s economy. The bank now expects China’s GDP growth to reach 4.9% this year, up from its previous forecast of 4.8%. Despite this increase, the World Bank still forecasts slower household income growth and a negative wealth effect from lower home prices in 2025.
Chinese authorities have announced plans to issue a record 3 trillion yuan ($411 billion) in special treasury bonds next year to boost growth. However, the bank warns that a turnaround in the property sector is not anticipated until late 2025.
The World Bank also highlighted the need for China to address its “economically insecure” population, which accounts for around 55% of the population. To achieve sustained recovery, authorities will need to balance short-term support with long-term structural reforms.
Source: https://www.reuters.com/world/china/world-bank-raises-chinas-gdp-forecast-2024-2025-2024-12-26