The World Bank has cut its 2024 forecast for China's gross domestic product growth. Now it expects the country's economic output to grow by only 4.4%.
In addition, the bank estimates that developing economies in East Asia and the Pacific, including China, will expand by 4.5%, down from an April prediction of 4.8%. According to the updated forecasts, the region regarded as the engine of global economic growth will face the sharpest economic slowdown in the past 50 years, not seen since the late 1960s.
Experts at the World Bank attribute a potential decline in economic activity in the Pacific region to China’s economic woes, including rising debt, difficulties in the property sector, and its aging population. The cautious trade policy towards Beijing adopted by other countries as well as rising geopolitical tensions are adding fuel to the fire.
