China to grow 4.8% in 2025 amid regional slowdown: World Bank
China is expected to achieve a prominent GDP growth of 4.8 percent in 2025 and 4.2 percent in 2026, up from the previously forecasted 4.0 percent for both years in April, according to the World Bank's latest East Asia and Pacific Economic Update released on Tuesday, CGTN reports.
The upward revision is attributed to robust export performance and sustained manufacturing output, while considering expectations of a slowdown in export growth, potential reductions in fiscal stimulus, and ongoing structural economic challenges.
Similarly, the region is also expected to grow at 4.8 percent in 2025, up from the previously forecasted 4.0 percent.
Other countries in the region are projected to experience varying growth rates. Vietnam is expected to lead with a 6.6 percent growth, followed by Mongolia at 5.9 percent, and Palau at 5.7 percent in 2025.
The World Bank emphasized that while the region continues to outperform much of the global economy, it faces challenges such as rising global economic policy uncertainty, increasing trade barriers, and political instability in certain countries. These factors have led to subdued consumer and business confidence, resulting in a slowdown in investment activities.
Carlos Felipe Jaramillo, vice-president for East Asia and Pacific at the World Bank, noted that the region faces a jobs paradox – relatively strong economic growth alongside insufficient creation of quality jobs. He urged governments to reduce market entry barriers, allowing private sectors to create employment opportunities.
The report advocates for policy reforms and strategic investments in human capital and digital infrastructure, emphasizing the need to foster more competition in the services sector and to implement measures that better align workers' skills with available jobs.
As reported previously, China sees record-breaking passenger traffic in the first half of the National Day holiday.
