The World Bank predicted that China’s economic growth rate would slow down from 4.8% this year to 4.3% next year due to structural challenges such as persistent weakness in the real estate market, low consumer and investor confidence, an aging population, and global tensions.

The bank released its report on the East Asia and Pacific economies under the title of “Jobs and Technology.” The report highlighted that while the developing East Asia and Pacific region continues to grow faster than the rest of the world this year, the growth rate is slower compared to pre-pandemic levels. It was stated in the report that the region’s economy is estimated to grow by 4.8% this year and 4.4% next year. The report also mentioned that China, the largest economy in the region, is facing structural challenges like persistent weakness in the real estate market, low consumer and investor confidence, an aging population, and global tensions. As a result, the country’s economic growth rate is expected to decrease from 4.8% this year to 4.3% next year.

“The Long-Term Growth Depends on Deep Structural Reforms” The report indicated that the recent fiscal support in China may boost short-term growth, but long-term growth would rely on deeper structural reforms. While China’s growth has benefited its neighbors for thirty years, the report noted that this momentum is dwindling, suggesting the region would need to implement long-postponed deeper reforms to strengthen the inner dynamics of growth. The report also highlighted that the region faces challenges such as slowing growth in China, changing trade and investment patterns, and increasing global policy uncertainty, noting that recent trade tensions between the US and China have created opportunities for countries like Vietnam to deepen their roles in global value chains.