China economic update 2021: rebalancing act, from recovery to high-quality growth

To achieve quality growth over the medium-term, China will need to rebalance its economy across several dimensions, according to Rebalancing Act, From Recovery to High-Quality Growth, the latest China Economic Update released by the World Bank. Following a strong rebound in the first half of 2021, economic activity in China cooled rapidly in the latter half of the year. Real GDP growth is projected to reach 8.0 percent this year, before moderating to 5.1 percent in 2022. The economic slowdown reflects less-favorable base effects, diminished support from exports, and the government’s continued deleveraging efforts. Although full-year growth is projected to slow in 2022, momentum is expected to pick up, aided by a more supportive fiscal stance following the rapid withdrawal of fiscal policy support in 2021.