World Bank Reports China’s Economy Sustains 5.2% Growth in 2025 Amid Global Challenges

The World Bank has reported that China’s economy sustained a robust 5.2% growth in 2025, underscoring resilience amid global challenges such as trade uncertainties, cautious household spending, and moderating investment.

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Key Highlights

• Growth Forecast Raised: The World Bank’s latest China Economic Update revised its 2025 GDP growth forecast upward by 0.4 percentage points, citing stronger-than-expected performance in domestic consumption and investment News.az China Daily China Daily.
• Policy Support: Accommodative fiscal and monetary policies have bolstered demand, while targeted measures such as pension benefit increases and childcare subsidies are helping reduce precautionary savings and encourage household spending New Straits Times.
• Export Stability: Despite shifting global trade dynamics, exports to developing countries remained resilient, sustaining China’s external demand News.az China Daily.
• Structural Reforms: The World Bank emphasized that China’s long-term growth will rely more on domestic demand, urging reforms in the social protection system and a more predictable business environment to boost private sector confidence China Daily The State Council of the People's Republic of China.

Economic Context

• Resilience Amid Challenges: China’s economy faced headwinds from cautious consumer behavior and moderating investment growth in Q3, yet still outperformed earlier projections China Daily.
• Global Confidence: Other institutions, including the IMF and Asian Development Bank, also raised their forecasts for China’s 2025 growth, signaling broad confidence in the country’s economic trajectory China Daily.
• Sectoral Shifts: Roughly one-third of new foreign direct investment flowed into high-tech industries, reflecting global interest in China’s innovation-driven sectors New Straits Times.

Outlook

• 2026 Projection: The World Bank projects China’s GDP growth at 4.4% in 2026, noting that fiscal stimulus and reforms will continue to underpin resilience China Daily World Bank Group.
• Long-Term Priorities: High-quality development, innovation-driven transformation, and low-carbon growth remain central to China’s economic agenda, with opportunities emerging in consumption-driven sectors New Straits Times.

China’s sustained 5.2% growth in 2025 highlights its ability to balance short-term stimulus with long-term structural reforms, reinforcing its role as a stabilizing force in global trade and investment.