“It is expected that the structure of aggregate demand will continue to turn towards private domestic demand,” the World Bank announced.
Real consumption growth is gradually returning to pre-Kovid-19 levels, according to the World Bank, supporting the continued recovery of the labor market through improved consumer confidence.
The investments will, as it is stated, remain the engine of economic growth, compensating for the cooling of investments within the construction of infrastructure and real estate.
The World Bank has suggested that China should make more efforts to promote structural reforms, in order to steer the economy towards a greener, more resilient and inclusive development path.
“Focusing additional fiscal efforts on social spending and green investment, rather than on traditional infrastructure investment, will not only help ensure recovery and boost short-term demand, but also maintain the medium-term rebalance of the Chinese economy,” the bank said.