OECD: China’s growth expected to hit 4.9% in ’24

The Organisation for Economic Cooperation and Development (OECD) said its latest economic outlook on Thursday that China’s economy will grow by 4.9 per cent in 2024 and 4.5 per cent in 2025.

This marks an upward revision from OECD’s earlier estimates issued in February of 4.7 per cent and 4.2 per cent, respectively, reflecting a more optimistic outlook for the world’s second-largest economy.

“Economic growth will ease to 4.9 per cent in 2024 and 4.5 per cent in 2025. Adjustment in the real estate sector continues with housing starts still falling. However, infrastructure and manufacturing investment are growing at a moderate, but steady, pace.” OECD’s latest report read.

“Consumption growth will be stable but damped by high precautionary savings after the pandemic. Debt resolution of local government investment vehicles will gather momentum. Exports will pick up again as global demand recovers, and an increasing number of Chinese goods become competitive in international markets. Consumer price inflation will remain very low and producer prices will continue to fall.”

The Paris-based organisation raised its forecast for global growth in 2024 at 3.1 percent, the same as 2023, followed by a slight pick-up to 3.2 per cent in 2025.