World Bank report: China's economy to slow despite attractive package to boost economy; India strong

China's recent stimulus measures have been introduced as world superpowers America and China face financial crisis, but these are not enough to prevent a slowdown in its economic growth. These problems will also burden the economies of its neighboring countries. A new World Bank report has expressed these prospects. According to the World Bank, China's economic growth rate will drop to 4.3% next year. This is lower than the 4.8% forecast in 2024. Meanwhile, economic growth in the East Asia and Pacific region may slow to 4.4% in 2025 from 4.8% this year. China's slower growth will also slow the growth of East Asian countries, which benefited from China's increased demand for imports. A 1% reduction in China's growth could reduce the GDP growth of neighboring developing countries by 0.21%.

India's GDP will be the fastest among 24 countries in the next decade India's GDP growth will be the fastest among the 24 major countries in the world over the next decade. According to Ray Dalio's The Great Powers Index 2024 which examines the economic health of various countries, India will hold the top position with an average GDP growth of 6.30%. At the same time China will rank joint fourth with Turkey with an average GDP growth of 4%. In this list, Indonesia has been placed at the second position followed by China and Saudi Arabia. This means that China's economy may perform worse than Indonesia and Saudi Arabia. Singapore is sixth, Mexico seventh and Australia eighth.

China's incentive measures are not yet clear The World Bank warned that China's stimulus measures are unwarranted. In such a situation it is difficult to calculate their impact on economic growth. The World Bank report comes shortly after Chinese officials in Beijing announced the measures. Claimed to protect China's economy from a struggling real estate sector and weak consumer demand.

World Bank report promising for India Chinese markets have been buoyed by recent moves. Foreign investors are withdrawing money from Indian stocks and investing in China. Foreign investors have withdrawn 50295 crores from Indian stocks till Wednesday this month. Market insiders believe the World Bank report is a relief. This may slow down foreign investors' withdrawal from India.