(Finance) – The World Bank raised its forecast for China’s economic growth this year and next, but warned that weak household and business confidence, along with headwinds in the real estate sector, will continue to weigh on 2025.
The world’s second-largest economy has struggled this year, mainly due to a housing crisis and tepid domestic demand. An expected increase in US tariffs on goods when US President-elect Donald Trump takes office in January could also hit growth.
“Addressing challenges in the real estate sector, strengthening social safety nets and improving local government finances will be essential to unlocking a sustained recovery,” said Mara Warwick, World Bank country director for China.
“It’s important to balance the support in the short term to growth with structural reforms long term,” he added.