World Bank cuts China 2019 growth forecast to 6.2%

Economic growth in the world’s second-largest economy is poised to slow to 6.2% next year from 6.5% at the end of this year, according to a report by the World Bank, as the drag from China’s economic concerns becomes clearer in coming quarters.

“Looking ahead, China’s key policy challenge is to manage trade-related headwinds while maintaining efforts to limit financial risks,” the bank said.

The report highlighted consumption as the key driver of China’s economy next year, and said that weaker credit growth, slower investment and flagging global demand will be among the most major headwinds facing Beijing.

“To stimulate the economy, fiscal policy could focus on boosting household consumption rather than public infrastructure,” the bank wrote. The government could also further cut business taxes, the report read, as officials have already suggested are in store for next year.