The World Bank has cut its growth outlook for China, forecasting GDP to expand 5.0% in 2025 before slowing to 4.4% in 2026, 4.3% in 2027, and 4.2% in 2028. The downgrade reflects persistent weakness in domestic demand, a prolonged property market downturn, and softer exports. While the economy remained resilient in the first quarter of 2026 with 5% year-on-year growth supported by strong exports and high-tech investment, household consumption stayed subdued due to falling property prices and a soft labor market. The World Bank expects consumption to remain weak in 2026 and private investment to be constrained by the ongoing property adjustment, though additional fiscal stimulus and stronger AI-related investment could provide upside support. Tatiana Rosito, World Bank Division Director for China, Mongolia, and Korea, said further strengthening the social safety net would be a key measure to boost consumption.