World Bank lifts China 2025 GDP forecast to 4.8 percent ahead of a slowdown next year

The World Bank lifted its 2025 growth projection for China to 4.8 percent and raised its forecast for much of the region, but warned of a slowing momentum next year, citing low consumer and business confidence and weak new export orders.

Publishing its biannual economic outlook for East Asia and the Pacific region on Tuesday, the World Bank said it now expected China to grow 4.2 percent next year, after forecasting in April growth of 4.0 percent both this year and next.

"Growth in China, the region’s largest economy, is projected to decline ... because of an expected slowdown in export growth and a likely reduction in the fiscal stimulus in light of rising public debt, as well as continued structural deceleration," the authors of the report wrote.

The World Bank said it expected the rest of the East Asia and Pacific region to grow by 4.4 percent in 2025 - a 0.2 percentage point uplift - but stuck to its 4.5 percent prediction for 2026.

Reuters