World Bank raises China's economic growth outlook for 2024, 2025

The World Bank (WB) has revised its growth projections upward for China—the world's second-largest economy—in 2024 and 2025. This positive outlook is attributed to government initiatives, including increased fiscal spending and policy measures designed to stabilize the real estate sector.

According to the update released today, Dec. 26, the WB expected China's GDP to hit 4.9% in 2024, compared to the 4.8% it had previously estimated.

Meanwhile, growth is projected to decelerate to 4.5% in 2025, which is higher than the WB's previous forecast of 4.1%.

Recent policy easing measures are expected to support the economy. However, weak household and business confidence, coupled with headwinds in the real estate sector, will likely weigh on growth in 2025, the report added.

“Structural constraints to growth include low consumption, high debt levels among property developers and local governments, and an ageing population,” the WB highlighted.