# China’s Economic Recovery: Shifting Towards Sustainable High-Quality Growth

- Link: https://www.thailand-business-news.com/china/251751-chinas-economic-recovery-shifting-towards-sustainable-high-quality-growth
- Published: 2025-10-16T15:02:21+07:00
- Author: Li Zhong

**China’s growth is gradually increasing, driven by emerging sectors but constrained
by real estate issues. AMRO projects GDP growth of 4.8% in 2025. Structural changes
and supportive policies are needed to sustain this momentum, particularly in addressing
vulnerabilities in the property market and fostering innovation-led industries. 
Enhanced trade partnerships and green technology investments could also play a pivotal
role in stabilizing long-term growth.**

## China’s Economic Outlook

As of October 16, 2025, China’s near-term economic growth shows signs of improvement
as it undergoes a complex transition. Emerging sectors are expanding rapidly, yet
domestic demand is weakened due to a downturn in the real estate sector and challenging
external conditions. The ASEAN+3 Macroeconomic Research Office (AMRO) forecasts 
China’s GDP growth at 4.8% in 2025 and 4.4% in 2026, based on their Annual Consultation
Visit from August to September 2025.

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## Risks and Challenges

China faces significant near-term risks and long-term structural challenges. Domestically,
the economy must navigate real estate adjustments, regional financing pressures,
and bank asset quality issues. Externally, uncertainties in US trade policies pose
threats to exports and growth. Additional challenges include population aging, climate
change, and geopolitical tensions affecting economic balance and sustained growth.

## Policy Recommendations

Amid these challenges, China has adopted expansionary fiscal policies to boost domestic
demand, highlighting consumer programs and fiscal transfers. Monetary policy remains
supportive, though credit demand is sluggish. Coordination between central and local
governments is crucial for real estate recovery and financial stability. Achieving
sustainable growth will require fiscal reforms, fostering resilient consumption,
and industrial policy adjustments to improve productivity and support green and 
digital transformation.

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Source: [China’s Economic Recovery: Transitioning to High-Quality Growth – ASEAN+3 Macroeconomic Research Office ](https://amro-asia.org/chinas-economic-recovery-transitioning-to-high-quality-growth)