The World Bank has raised its 2025 growth forecast for China to 4.8%, while also upgrading projections for much of the East Asia and Pacific region. However, the organization warned that economic momentum could slow in 2026 due to weaker confidence and sluggish export demand.
In its biannual economic outlook released on Tuesday, the World Bank said it now expects China’s GDP to grow 4.2% in 2026, compared with its earlier April forecast of 4.0% for both 2025 and 2026.
According to the report, China’s growth is likely to moderate as export activity slows, fiscal stimulus tapers amid rising public debt, and structural challenges continue to weigh on the economy.
For the broader East Asia and Pacific region, the World Bank expects 4.4% growth in 2025, slightly higher than its previous estimate. The forecast for 2026 remains unchanged at 4.5%, signaling steady but slower expansion.
