The World Bank estimates that China's economy will grow by 4.5% in 2024, slowing down from 2023 which is estimated to grow by 5.2%. The World Bank stated that the estimated growth of 4.5% in 2024 is the slowest growth in three decades, outside the Covid-19 pandemic period.
This slowdown is mainly caused by domestic consumption which is expected to be restrained, while the crisis in the property sector will hamper the increase in investment.
In fact, according to the World Bank, the slowing trend in China will continue until 2025, mainly influenced by hampered investment due to increasing debt, demographic barriers, and narrowing opportunities to catch up with productivity.
"Growth is expected to fall further in 2025, to 4.3%, amid continued potential growth slowdown," wrote the World Bank in the January edition of the Global Economic Prospects report, quoted on Wednesday (10/1/2024).
The World Bank stated that although central government support can help increase infrastructure spending, local governments in China have limited fiscal space to implement various policies.
Trade growth is also expected to remain weak in 2024, as weak global demand weighs on exports. Meanwhile, slower domestic demand growth will restrain imports, including metals.
With China's economy slowing, the World Bank estimates that growth in the East Asia and Pacific region will slow to 2.5% in 2024 and 4.4% in 2025.
Outside of China, economic growth in the region is estimated to strengthen slightly, namely 4.7% in 2024 and 2025. This is supported by solid domestic demand, along with low inflation, a strengthening labor market and supported by strong service activity. improved.
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