China's economy set for new blow in 2024 as World Bank issues warning

Beijing attempted to resuscitate its economic situation by investing in factories and construction.

It also sought to ramp up demand for its services.

Growth is not expected to bounce back any time soon, with the World Bank forecasting just 4.3 per cent in 2025.

The report warned the world’s second-largest economy is struggling to recover from the coronavirus pandemic and remains “fragile”.

The property sector, global demand for Chinese exports, high levels of debt and wavering consumer confidence are also taking their toll.

However, the pandemic caused a major hit after limiting travel, manufacturing and transport.

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A 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.

The 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.