World Bank says China growth rate will drop next year, doubt over recent stimulus measures

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 2024
• 2024 estimate revised up 0.3% on stimulus measures, but 2025 projection unchanged
• Weak consumer spending, property market woes, aging population cited as challenges
• Recent stimulus focused on supply side, may not boost consumer demand
• Deeper structural reforms needed for long-term growth, World Bank economist says
• Rest of East Asia/Pacific region expected to grow 4.7% in 2024, 4.9% in 2025
• Region 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.