Signs of slowdown in China's economy: Growth forecasts announced
While China's growth forecasts are declining due to weak domestic demand and a downturn in the real estate sector, the global economy is expected to maintain its growth.
China's economy is expected to slow down in the upcoming period due to weak domestic demand, trade restrictions, and the downturn in the real estate sector. According to institute forecasts, while China's growth rates are declining, the global economy is projected to maintain its growth.
Slowdown process in China's economy
China's economy is expected to continue slowing down in the upcoming period. The sluggish domestic demand in the country and the loss of momentum in export growth due to trade restrictions are dampening the growth outlook.
Institute growth forecasts
The Peterson Institute for International Economics projects that China's economy will grow by 4.6 percent in 2026, while it announced the growth forecast for 2027 as 4.3 percent. China's economy had grown by 5 percent in 2025.
Real estate and trade pressure
Overcapacity and the prolonged downturn in the real estate sector are exerting pressure on domestic demand in the economy. The increase in trade restrictions is also among the factors threatening export performance.
Support from artificial intelligence investments
Despite the pressures on China's economy, the global surge in artificial intelligence investments is providing support to the country in certain areas. Karen Dynan noted that China benefits from the export of products supporting global artificial intelligence investments.
Quarterly growth figures
China's economy grew by 5 percent annually in the first quarter of the year. In the second quarter, the growth rate dropped to 4.3 percent, standing out as the lowest quarterly growth recorded since the end of 2022.
Global economic outlook
The world economy is expected to continue growing despite the slowdown in China. The global economy is forecast to grow by 3.2 percent this year and 3.1 percent next year.