The World Bank forecasts China’s GDP to grow 8.5% this year

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Beijing, Jun 29 (EFE) .- The World Bank (WB) forecasts that China’s Gross Domestic Product (GDP) will grow 8.5% this year, and forecasts growth of 5.4% for 2022 and 5, 3% by 2023 in a report released today.

The institution, based in Washington, considers that the recovery of the Asian country continues to advance at a good pace but that “some risks remain” for its economy, and highlights that growth will slow down once the base effects caused by the pandemic have been overcome. of the covid.

According to the World Bank, “improved consumer and business confidence, as well as better labor market conditions, will support a shift towards private domestic demand.”

Likewise, the agency expects that the engines driving Chinese economic growth “gradually” shift from industrial production to services.

“The risks are, in general, under control. On the negative side, the possible outbreaks of covid that could interrupt economic activity despite efforts to contain the spread of the virus,” indicates the agency.

“To this must be added the bilateral tensions with its main trading partners or certain financial stability risks given the high corporate leverage and the inflated real estate market,” the institution adds.

The director of the institution for China, Martin Raiser, foresees in the report that the macroeconomic policies of the Asian country should be “normalized” based on the recovery both domestically and globally.

However, the World Bank cites “medium-term challenges” for China such as “headwinds at the demographic level, slowing productivity, a high level of inequality and social vulnerability”, as well as “a carbon-intensive production structure. “.

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“Despite the strong economic recovery, the pandemic has exacerbated some of these challenges,” the agency considers.

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