For the World Bank, debt, trade barriers and political uncertainties are weakening the economic dynamism of the region.
The World Bank predicts that China slow its growth in 2024 and 2025. Its latest projections reflect that the Gross Domestic Product (GDP) will register an advance of 4.5% in 2024 and 4.3% in 2025, compared to the expansion of 5.2% in 2023.
“China aims to transition to a more balanced growth path, but the quest to boost alternative demand drivers is proving difficult.” The region “It is outperforming much of the rest of the world, but it is not reaching its own potential.”
This is stated by the World Bank, which added that the country “needs more than conventional fiscal stimulus” and that debt, trade barriers and political uncertainties are weakening the region’s economic dynamism.
However, the organization has revised its forecasts up by one tenth compared to those published last October.
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Growth: what is the Chinese government’s forecast
China’s government has set a growth target of around 5% this year, down from 5.2% last year.
Furthermore, regarding the region of East Asia and the Pacific, The World Bank estimates that developing countries should register a expansion of 4.6% this year and 4.8% next year. “They are growing faster than the rest of the world, but slower than before the pandemic,” she says.
“The East Asia and Pacific region is making a strong contribution to global economic growth, even as it faces a more challenging and uncertain global environment, aging populations ands impacts of climate change“, Add.
Source: Ambito
