ADB: China’s growth outlook steady at 4.8% in ’24

The Asian Development Bank (ADB) kept its forecast of 4.8 per cent economic growth in China this year, but expects a slight moderation to 4.5 per cent next year due to challenges in the property market and low investor and consumer confidence.

The Asian Development Outlook (ADO) September 2024, released on Wednesday, expects inflation to stand at 0.5 per cent for 2024, lower than the April projection of 1.1 per cent. This downward revision is attributed to the continued decline in food prices.

Strong global demand and increased credit availability for certain industries, such as semiconductors, artificial intelligence, and low-carbon technologies, are expected to drive growth this year and next.

Infrastructure investment is expected to pick up with increased local government bond issuance in the second half of the year, but the property sector correction may dampen growth. Real estate investment is expected to decline further into next year.

Attribution: Asian Development Bank report

Subediting: M. S. Salama