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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.

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