China’s projected economic slowdown in 2025, despite near-term stimulus measures, poses serious challenges to growth in East Asia and the Pacific, underscoring the need for deeper structural reforms.
He World Bank expects China’s growth weaken further in 2025, even with a temporary boost from recent stimulus measures, putting further pressure on regional economies.
The expansion of China fall to 4.3% next year from an estimated 4.8% in 2024, according to the Bank’s semiannual economic report. As a result, growth in East Asia and the Pacific — which includes countries such as Indonesia, Australia and Korea — will slow to 4.4% in 2025 from about 4.8% this year.
“For three decades, China’s growth has benefited its neighbors, but the size of that boost is now declining“, the World Bank said on Tuesday. “The recently announced fiscal support could boost short-term growth, but long-term growth will depend on deeper structural reforms,” maintains a document cited by the Bloomberg agency.
Chinese officials had set an economic growth goal of around 5% for this year, a goal that looked increasingly unattainable in August due to weak consumption and a still unstable property market. At the end of September, Beijing launched a series of stimuli focused mainly on monetary policy, with measures such as interest rate cuts.
The impact of China’s stimulus measures
Expectations are now growing for greater fiscal support to increase spending, restore confidence and revive the economy.
The World Bank’s growth projection for China this year is in line with estimates from a Bloomberg survey, but its forecast for 2025 is slightly below the median at 4.5%.
In addition to China’s slower growth, changes in trade and investment flows, along with growing global political uncertainty, They could also affect the East Asia and Pacific regionsaid the World Bank.
chinese trade war usa.jpg
Photo: South China Morning Post
Although trade tensions between the US and China have created opportunities for countries like Vietnam to play a role in linking major trading partners, “Emerging evidence suggests economies may be increasingly limited to playing a ‘one-way connector’ role‘, as new, stricter rules of origin on imports and export restrictions are imposed,” the World Bank said.
The bank also examined how new technologies, such as industrial robots and artificial intelligence, impact labor markets in Asia.
Given the prevalence of manual labor in the region, a smaller proportion of jobs are threatened by AI compared to advanced economies. However, this also means that the region is less prepared to reap the productivity benefits of AI, according to the World Bank.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
