The World Bank’s forecast was strengthened by China’s economic growth
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Mara Warwick, director of the World Bank In China, he said: Addressing challenges in the real estate sector, strengthening social safety nets, and improving local government finances are necessary to restore sustainable recovery.
He added in a statement: It is important to balance short-term growth support with long-term structural reforms.
Due to the impact of recent easing policies and a short-term export boost, the World Bank sees China’s GDP growing at 4.9 percent this year, up from a forecast of 4.8 percent in June. is more Beijing has set a growth target of “around 5 percent” this year, a target it says it is confident of achieving. However, growth is expected to slow to 4.5% in 2025, which is still higher than the World Bank’s previous forecast of 4.1%.
The World Bank added that until 2025, we expect the slow growth of household income and the negative effects of falling housing prices to affect consumption.
Reuters reported this week that to revive growth, Chinese officials have agreed to a record 3 trillion yuan next year. to issue special treasury bonds equal to 411 billion dollars. These figures will not be officially announced until the annual meeting of China’s parliament, the National People’s Congress, in March 2025, and could still change before the meeting.
While the housing regulator will continue its efforts to prevent further declines in China’s property market next year, the World Bank said no development is expected in the sector until late 2025.
China’s middle class has expanded significantly since the 2010s and will comprise nearly 32 percent of the population by 2021, but World Bank estimates put it at about 55 percent. Economically, they are in an unsafe situation.
