The World Bank now projects China’s economy to expand by 4.8%, compared with 4% predicted in April. The new forecast is closer to China’s official target of around 5% growth in gross domestic product in 2025. The economists did not provide a specific reason for the change in forecast from April, but noted that China’s economy has benefited from government support that could fade next year.
Trade tensions between China and the U.S. escalated in April, temporarily sending U.S. tariffs on Chinese imports to well over 100% before the two countries reached a trade truce — now in effect until mid-November. For now, U.S. tariffs on China are 57.6%, more than double where they were at the start of the year.
