The World Bank is lifting its outlook on the Chinese economy, forecasting 2025 GDP growth to be at 4.8% before slowing to 4.2% in 2026. Their previous set of forecasts came in April and pinned both years at 4.0% growth. So, this marks a significant bump higher to that.
There were no reasons cited in the report but as you would recall, April was highlighted by Trump's reciprocal tariffs and him waging an all-out trade war with China. So, things have definitely looked better since then as both sides are now calling a truce in trying to figure out how to proceed next.
