The World Bank has raised its growth forecasts for China’s economy for 2024 and 2025, stressing the need for structural reforms to address declining confidence and structural problems in the world’s second-largest economy.

In a report released on Thursday, the World Bank said it expects China’s economy to grow by 4.9 per cent in 2024, up 0.1 per cent from its previous estimate in September.

The bank said its forecast for China’s economic growth in 2025 will be 4.5 per cent, up from 4.3 per cent in a previous forecast.

For months, the Chinese government has been implementing plans to increase financial support to boost consumption in 2025 by raising pensions, subsidising medical insurance for residents and expanding the exchange of consumer goods.

China’s GDP grew 4.8% year-on-year in the first nine months of 2024, according to data from the National Bureau of Statistics.

GDP reached 94.97 trillion yuan ($13.33 trillion) between January and September, according to the data.