The drag is partly due to the expected deceleration in the world’s second-largest economy, whose expansion is forecast to slow to 4.5% and 4.3% this year and the next, respectively. “China is aiming to transition to a more balanced growth path but the quest to ignite alternative demand drivers is proving difficult,” the World Bank said in its report.
Developing economies of East Asia and the Pacific are set to see slowing growth, with higher-for-longer interest rates and worsening geopolitical tensions clouding the outlook for the region, the World Bank said.
Gross domestic product growth is seen at 4.5% for 2024 and 4.3% for 2025, down from the 5% estimated for 2023, the World Bank said in its semi-annual outlook. While most economies in East Asia and the Pacific are set to grow faster than the rest of the world, their pace is still slower than before the pandemic.
