By Ronnie Harui
China’s economy is likely to slow next year due to continued domestic headwinds, the World Bank said in a report, cutting its growth projection for the country.
Factors such as the fading rebound from the reopening of the economy, its huge debt, and the weakness of its property sector will weigh on growth in China, the World Bank said in its semi-annual outlook for the East Asia and Pacific region on Sunday.
The World Bank cut its 2024 forecast for China’s gross domestic product growth to 4.4% from 4.8%, while maintaining its 2023 GDP growth forecast at 5.1%.
Economic growth in the East Asia and Pacific region is also slowing faster than projected, the World Bank said.
Key external factors affecting the region include slowing global growth and still-tight financial conditions, it said. Among domestic factors, the most important are the legacy of increased public and private debt, and the macroeconomic policy stance, the World Bank added.
The East Asia and Pacific region’s GDP growth is projected at 5.0% in 2023 and 4.5% in 2024, the World Bank said. That compares with prior forecasts of 5.1% and 4.8%, respectively.
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