The World Bank has recently released a report projecting a slowdown in China’s economy for the next year. The country is expected to face various domestic headwinds, including the lingering impact of reopening the economy, mounting debt, and the weakened state of the property sector. These factors will significantly impact China’s growth, according to the World Bank’s semi-annual outlook for the East Asia and Pacific region.
The World Bank has revised down its GDP growth forecast for China in 2024 from 4.8% to 4.4%. However, it has maintained its prediction of a 5.1% GDP growth for China in 2023. Meanwhile, the East Asia and Pacific region as a whole is also experiencing a faster slowdown in economic growth than originally projected.
This decline in growth can be attributed to both external and internal factors. On the external front, slowing global growth and tight financial conditions have played a significant role. Internally, the region is grappling with the burden of increased public and private debt, as well as the overall macroeconomic policy stance.
According to the World Bank, the East Asia and Pacific region is expected to achieve a GDP growth rate of 5.0% in 2023 and 4.5% in 2024. These figures are lower than the previously projected rates of 5.1% and 4.8%, respectively.
Overall, it is evident that China’s economy will face significant challenges in the coming year, while the entire East Asia and Pacific region will also experience a notable slowdown in economic growth.