World Bank Raises China's Growth Forecast for This Year to 4.8%

The World Bank has projected China's gross domestic product (GDP) growth rate for this year at 4.8%.

According to state-run media China Global Television Network (CGTN) and others on October 8, the World Bank raised its GDP growth forecast for China in its 'East Asia and Pacific (EAP) Economic Update' report released the previous day. The new projection of 4.8% is higher than the forecasts made in April (4.0%) and June (4.5%).

China is aiming for a growth rate of around 5% this year and achieved 5.3% in the first half of the year.

Despite concerns over a potential slowdown in export growth, the possibility of reduced fiscal stimulus, and ongoing structural challenges in the Chinese economy, the outlook was revised upward due to strong export performance and continued manufacturing output, according to the report.

In this report, the World Bank also raised its growth forecast for the entire East Asia and Pacific region to 4.8%, up from 4.0% in April.

During the same period, the country-specific growth forecasts were revised as follows: Vietnam was raised from 5.8% to 6.6%, Cambodia from 4.0% to 4.8%, while Mongolia was lowered from 6.3% to 5.9%, and Palau from 11.9% to 5.7%.

The World Bank noted that the growth rate in East Asia and the Pacific is higher than the global average, but also explained that investment is being dampened by global economic policy uncertainty, the expansion of trade barriers, and political instability in some countries.

It further pointed out that although the region enjoys high growth rates, it faces the paradox of a shortage of quality jobs. The report emphasized that governments should lower market entry barriers to enable private companies to create more employment opportunities.