Moody's Predicts China's Economic Growth Will Slow Down by 2025

Moody's Ratings states that despite supportive measures, China's economic growth is likely to slow down in 2025. Moody's projected that China's fourth quarter GDP growth would be around 4.5%, decreasing to 4.2% in 2025 and 3.8% in 2026. While China's policy support measures could develop in response to potential trade restrictions, the extent to which these policies can mitigate the impact remains uncertain. Analysts noted, “Economic uncertainty, low returns on financial savings, and the impact of the correction in property prices are dampening consumer sentiment and demand. Without sufficient household-targeted incentives, domestic consumption may continue to be a weak driver of growth.”