The World Bank has upgraded its 2025 economic growth forecast for China to 4.8 per cent and revised projections upward for much of the East Asia and Pacific region, but cautioned that growth momentum is expected to weaken next year due to declining consumer and business confidence and softening export orders.
In its biannual economic outlook for East Asia and the Pacific released today, the World Bank projected China’s growth to slow to 4.2 per cent in 2026, slightly higher than its April forecast of 4.0 per cent for both 2025 and 2026. The report attributed the anticipated slowdown to reduced export growth, a likely scaling back of fiscal stimulus amid rising public debt, and ongoing structural challenges in China, the region’s largest economy.
For the broader East Asia and Pacific region, the World Bank raised its 2025 growth forecast by 0.2 percentage points to 4.4 per cent, while maintaining its 2026 projection at 4.5 per cent. Despite the upward revision, the report highlighted concerns over economic headwinds, including weaker global demand and domestic uncertainties, which could impact the region’s growth trajectory.
The updated forecasts reflect cautious optimism for the region, balanced against challenges that could temper economic progress in the near term, particularly for Malaysia and its regional trade partners.
