World Bank lifts China growth forecasts but calls for deeper reforms
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Policy easing and stronger exports have helped economy, but country still faces property crisis and weak demand. The World Bank has lifted its growth forecasts for China’s economy, but called for deeper reforms and warned that the country will continue to face headwinds from a lingering property downturn.
The Washington-based institution said that it expected China’s gross domestic product (GDP) to rise by 4.9% in 2024 as a result of recent policy easing and stronger exports. That is up from June forecasts of 4.8% and is just shy of Beijing’s own 5% growth target.
The world’s second-biggest economy has struggled this year, as it continues to feel the effects of a multiyear property crisis and weak domestic demand. Beijing has tried to pivot the country to more hi-tech industries to boost GDP, but there are growing fears that a rise in US tariffs when Donald Trump returns to the White House in January could further knock growth.
The World Bank said that subdued confidence among households and businesses would continue to weigh on China’s growth in 2025. That was on top of structural problems, including low consumption and high debt levels among property developers and local governments, as well as an ageing population.
It said a turnaround in the China property market was not expected until late 2025. The World Bank forecasts growth in China will slow to 4.5% for 2025. However, that is still higher than earlier forecasts of 4.1%. The multilateral bank reiterated its calls for deeper reforms in the Chinese economy, explaining: “Conventional stimulus measures will not be sufficient to reinvigorate growth.”.
