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China’s Economic Growth to Slow, Global Economy to See Moderate Growth

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World Bank forecasts 4% growth for China in 2026, while global inflation and expansion remain moderate.

The World Bank has released a new report predicting a slowdown in China’s economic growth to 4% in 2026. This projected rate represents a significant decrease from recent years, highlighting potential headwinds facing the world’s second-largest economy. The report attributes this slowdown to a confluence of factors, including ongoing challenges in the property sector and adjustments within the country’s economic policies. While the 4% growth rate is still substantial, it underscores the evolving dynamics of the Chinese economy and its impact on the global stage.

Simultaneously, the global economy is anticipated to experience a more moderate expansion. The World Bank forecasts a global growth rate of 2.7% for both 2025 and 2026. This relatively low growth rate reflects ongoing uncertainties in the international arena, including lingering effects of the ongoing war in Ukraine, supply chain disruptions, and persistently high inflation. While not a recessionary prediction, the moderate growth suggests a period of cautious expansion and indicates that economic challenges remain substantial on a global scale. Global inflation is also predicted to remain relatively stable at an average of 2.7% in both 2025 and 2026. This indicates a stabilization in prices, albeit not a rapid return to pre-pandemic levels.

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