China’s economy set for new blow in 2024 as World Bank issues warning
The Chinese economy has been issued with a fresh warning from the World Bank as Beijing braces for a new fiscal blow in 2024.
The World Bank claimed China’s annual growth is expected to fall from 5.2 per cent to 4.5 per cent next year.
An investor looks at screens showing stock market movements at a securities company in Beijing
GETTY
China’s share of the global economy is decliningReutersA number of global economies were dealt a fiscal blow as restrictions impacted the labour market.
However, most of the jobs created during China’s recovery have been low-skilled work in service industries with low pay.
The report said: “The outlook is subject to considerable downside risks.”
It added that a prolonged downturn in the real estate sector would have wider ramifications and would further squeeze already strained local government finances.
Shipping containers in ChinaGETTYThe World Bank is hoping Beijing pursues broad structural reforms.
It also wants central government to take measures on the burden of supporting local governments.
However, it is not all doom and gloom for the Chinese economy.
There has been strong investment in infrastructure and strategically important areas, including computer chips.
A recovery in consumer spending would provide a much-needed boost to Beijing’s fiscal position.
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