World Bank Raises China's Growth Forecast for This Year from 4.8% to 4.9%

Next Year's Forecast Presented at 4.5%

The World Bank (WB) has revised upward its forecast for China's real Gross Domestic Product (GDP) growth rate this year to 4.9%.

In the "China Economic Update Report" released on the 26th, the WB adjusted its forecast for China's economic growth rate this year from 4.8% in June to 4.9%, an increase of 0.1 percentage points, and projected a growth rate of 4.5% for 2025.

The WB stated that despite various challenges, China's economy recorded a high growth rate of 4.8% in the first to third quarters of this year. Since the second quarter, China's economy has slowed due to weak domestic demand and a real estate downturn. The Chinese government has introduced stimulus measures for short-term domestic demand recovery and long-term financial stability.

The WB suggested that China needs to revitalize economic growth through structural reforms. It emphasized that increasing liquidity to stimulate domestic consumption demand is particularly important. Increasing liquidity helps reduce the gap between urban and rural areas and income inequality, which paves the way for sustainable, domestic demand-driven growth.

Mara Warwick, the World Bank's Director for China, Mongolia, and Korea, said, "The key is to balance short-term growth support with long-term structural reforms," adding, "Addressing challenges in the real estate market, strengthening social safety nets, and improving the fiscal condition of local governments are crucial for economic recovery." She further noted, "Clearly communicating specific policy messages is important to enhance the trust of markets and the public."