The World Bank increased its forecast for much of the area and increased its growth estimate for China in 2025 to 4.8%, but cautioned that the pace would decrease the following year due to poor new export orders and low business and consumer confidence.
After predicting growth of 4.0% this year and next, the World Bank revised its projection for China's growth to 4.2% next year in its biennial economic outlook for East Asia and the Pacific area, which was released on Tuesday."Growth in China, the region's largest economy, is projected to decline because of an expected slowdown in export growth and a likely reduction in the fiscal stimulus in light of rising public debt, as well as continued structural deceleration," the report's authors wrote.
The World Bank maintained its 4.5% forecast for 2026 but stated that it anticipated the rest of the East Asia and Pacific area to grow by 4.4% in 2025, an increase of 0.2 percentage points.
