The World Bank in a report said that its forecast for the economic growth in China for 2024 and 2025 went up. However, the institution warned that low household and business confidence and problems in the property sector would remain drivers of growth.
This year, China's economy suffered due to a property crisis and weak domestic demand with the potential hike of the U.S. tariff mounting pressure on growth.
Policymakers ease, exports push growth. The World Bank, for one, has pushed its 2024 estimate higher than last year's from 4.8 per cent to 4.9 per cent.
Even so, China's 2025 growth estimate was also adjusted up from 4.1 per cent to 4.5 per cent.
The slower growth of household incomes and lower housing prices will weigh on consumer spending through 2025.
In an effort to prop up growth, Beijing aims to issue 3 trillion yuan ($411 billion) in special treasury bonds next year.
A recovery in the property sector is not expected until late 2025.
Even though a middle class is growing, 55% of China's population remains economically insecure, and there is a need for more opportunities.
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