dc.contributor.author	World Bank
dc.date.accessioned	2025-01-16T16:20:15Z
dc.date.available	2025-01-16T16:20:15Z
dc.date.issued	2025-01-16
dc.description.abstract	China’s gross domestic product (GDP) growth has moderated since the second quarter of 2024, owing to subdued domestic demand. The government has responded to the domestic demand slowdown with incremental policy stimulus, balancing short-term growth support with longer term de-risking objectives. While monetary policy has been eased, its impact has been constrained by subdued credit demand. Despite lower down payment ratios and mortgage rates, state-financed purchase of housing inventories, and liquidity support to developers, the property sector remains weak in the face of dampened housing demand. The outlook is subject to domestic and external risks. Domestically, a more persistent downturn in the property sector could further temper investment and local government revenues. Tighter local government financing, in turn, can lead to under-execution of fiscal policies, dampening growth. China’s growth slowdown is partly driven by structural factors, such as structurally low consumption, high property developer and local government debt, and an aging population. Addressing these challenges requires structural reforms to address vulnerabilities and sustain growth. Key priorities include (i) fostering domestic demand by strengthening social safety nets, redirecting fiscal resources to social spending, and promoting market-oriented reforms to encourage private sector investment; (ii) supporting a sustainable property sector recovery by addressing shortcomings in the property financing mechanism and resolving the sector’s debt overhang; and (iii) managing local government financial risks through reform in the fiscal framework and medium-term subnational fiscal consolidation.	en
dc.identifier	http://documents.worldbank.org/curated/en/099624201162511719/IDU161fc8f7517e7b1441f1bfcb1ba7520a527b6
dc.identifier.doi	10.1596/42697
dc.identifier.uri	https://hdl.handle.net/10986/42697
dc.language	English
dc.language.iso	en_US
dc.publisher	Washington, DC: World Bank
dc.rights	CC BY-NC 3.0 IGO
dc.rights.holder	World Bank
dc.rights.uri	https://creativecommons.org/licenses/by-nc/3.0/igo
dc.subject	ECONOMIC GROWTH
dc.subject	GROSS DOMESTIC PRODUCT (GDP)
dc.subject	PRIVATE SECTOR DEVELOPMENT
dc.subject	FINANCIAL STABILITY
dc.subject	DEBT AND MACROECONOMIC STABILITY
dc.title	China Economic Update, December 2024	en
dc.title.subtitle	Reviving Demand, Regaining Momentum	en
dc.type	Report
dspace.entity.type	Publication
okr.date.disclosure	2025-01-16
okr.date.doiregistration	2025-04-14T11:49:14.334903Z
okr.date.lastmodified	2025-01-16T00:00:00Z	en
okr.doctype	Economic & Sector Work::Economic Updates and Modeling
okr.doctype	Economic & Sector Work
okr.docurl	http://documents.worldbank.org/curated/en/099624201162511719/IDU161fc8f7517e7b1441f1bfcb1ba7520a527b6
okr.guid	099624201162511719
okr.identifier.docmid	IDU-61fc8f75-7e7b-441f-bfcb-ba7520a527b6
okr.identifier.externaldocumentum	34446294
okr.identifier.internaldocumentum	34446294
okr.identifier.report	196369
okr.import.id	6366
okr.imported	true	en
okr.language.supported	en
okr.pdfurl	http://documents.worldbank.org/curated/en/099624201162511719/pdf/IDU161fc8f7517e7b1441f1bfcb1ba7520a527b6.pdf	en
okr.region.administrative	East Asia and Pacific
okr.region.country	China
okr.topic	Finance and Financial Sector Development::Debt Markets
okr.topic	Macroeconomics and Economic Growth::Economic Growth
okr.topic	Macroeconomics and Economic Growth::Fiscal & Monetary Policy
okr.topic	Macroeconomics and Economic Growth::Economic Modeling and Statistics
okr.unit	EFI-EAP-MTI-MacroFiscal-1 (EEAM1)

Publication: China Economic Update, December 2024: Reviving Demand, Regaining Momentum

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China Economic Update, December 2024: Reviving Demand, Regaining Momentum