World Bank Lifts China Growth Forecasts but Calls for Deeper Reforms

World Bank Lifts China Growth Forecasts

"China's growth forecast rises, but challenges loom!"

Policy Easing and Stronger Exports
The World Bank has raised its growth forecast for China's economy to 4.9% in 2024, driven by recent policy easing and stronger exports.

Lingering Property Crisis
Despite the positive outlook, China continues to face significant challenges from a prolonged property downturn and weak domestic demand.

Structural Problems
The World Bank highlights structural issues such as low consumption, high debt levels among property developers and local governments, and an ageing population.

Need for Deeper Reforms
The institution calls for deeper reforms, stating that conventional stimulus measures will not be sufficient to reinvigorate growth.

Balancing Short-Term and Long-Term Goals
Mara Warwick, the World Bank country director for China, emphasizes the importance of balancing short-term support with long-term structural reforms.

Boosting Productivity and Social Welfare
The report suggests that Chinese authorities should focus on boosting access to quality education, healthcare, and social welfare to alleviate economic anxieties.

Economic Insecurity
While China's middle class has grown, about 55% of the population remains economically insecure, underscoring the need for broader opportunities.

Common Prosperity
Expanding opportunities for everyone to move up the economic ladder is crucial for achieving China's goal of common prosperity.

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Link
(https://www.theguardian.com/business/2024/dec/26/world-bank-lifts-china-growth-forecasts-economy-property-crisis)