Financial News: World Bank Forecasts China GDP To Grow 4.9%

World Bank Forecasts China GDP To Grow 4.9% In 2025

12/11/2025 - 03:01:00 (RTTNews)

(RTTNews) - China's economy is forecast to expand more than previously estimated this year and the growth will depend more on domestic demand in the coming years, the World Bank said in its latest China Economic Update, released Thursday.

The bank projected economic growth at 4.9 percent this year and 4.4 percent in 2026, as existing headwinds are expected to persist.

The lender expects fiscal measures together with some stability in global trade policy to support investment and exports.

Earlier in October, the bank had forecast China's growth to reach 4.8 percent in 2025 and 4.2 percent in 2026.

"China's growth in the coming years will depend more on domestic demand," Mara Warwick, World Bank Division Director for China, Mongolia, and Korea said.

In addition to short-term fiscal rules, advancing structural reforms and creating a more predictable environment for businesses can help boost confidence and lay the groundwork for resilient and sustainable growth, Warwick said.

The World Bank cited that challenges in the property sector, subdued earning prospects, labor market softness, and trade policy uncertainty could last longer than expected and weigh on consumption and investment.

However, higher-than-expected fiscal spending, including stronger measures to enhance social protection, and more decisive policy actions to stabilize the property sector are upside risks to the outlook, the bank noted.

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