Serrari Group

The World Bank has made significant downward revisions to China’s growth outlook for 2024, reflecting concerns raised by a series of weak economic indicators. This adjustment, from the previously projected 4.8% in April to the current 4.4%, underscores mounting apprehensions regarding China’s economic slowdown and its potential ripple effects across Asia.

China’s economy faces notable vulnerabilities, as pointed out by the World Bank. These include declining retail sales, stagnant housing prices, and a rise in household debt. Lackluster private sector investment has also contributed to the country’s economic deceleration.

These concerns come in the context of China’s ambitious target of achieving around 5% growth in 2023. However, the revised projection underscores the significant challenges the nation faces in meeting this goal, which has implications not only domestically but also for the broader Asian region.

The repercussions extend beyond China, with the World Bank also downgrading its GDP growth forecast for developing economies in East Asia and the Pacific for 2024. The new estimate stands at 4.5%, down from the prior prediction of 4.8%. This is one of the slowest growth rates for the region since the late 1960s, excluding extraordinary events like the coronavirus pandemic, the Asian financial crisis, and the global oil shocks of the 1970s.

Aaditya Mattoo, the World Bank’s Chief Economist for East Asia and the Pacific, points out that the optimism surrounding China’s post-pandemic recovery has not materialized as expected. He suggests that governments, including China’s, should initiate “deeper” service sector reforms to stimulate growth and harness the opportunities presented by the ongoing digital revolution.

The backdrop of ongoing trade tensions between China and the United States further complicates the economic landscape in East Asia. While initially, Southeast Asian countries benefited from these tensions as demand shifted their way, recent US industrial and trade policies, including the Inflation Reduction Act and the Chips and Science Act, have reversed this trend.

These policies, designed to bolster US manufacturing and reduce American reliance on China, have negatively impacted Southeast Asian nations. Exports of affected products to the US have waned, and the region’s growth prospects have been hampered by rising household, corporate, and government debt.

The World Bank’s adjusted forecasts underscore that the challenges posed by US-China trade tensions extend beyond China to encompass much of East Asia. Consequently, Southeast Asian nations such as Indonesia and Vietnam are advocating for equitable treatment in trade relations, particularly in areas such as green technology subsidies and electric vehicle tax credit benefits.

As the global economic landscape continues to evolve, governments and businesses alike are closely monitoring these developments, seeking signs of resilience and recovery amidst these headwinds.

Photo source: Business Daily

By: Montel Kamau
Serrari Financial Analyst
2nd October, 2023

Share this article:
Article and News Disclaimer

The information provided on is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk. is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.

In no event will be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.

The articles, news, and information presented on reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.

The content on may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.

Every effort is made to keep the website up and running smoothly. However, takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.

Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.

By using, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website., reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.

Serrari Group 2023