Dec 26 Reuters The World Bank raised on Thursday its forecast for China39;s economic growth in 2024 and 2025, but warned that subdued household and business confidence, along with headwinds in the property sector, would keep weighing it down next year.

The world39;s secondbiggest economy has struggled this year, mainly due to a property crisis and tepid domestic demand. An expected hike in U.S. tariffs on its goods when U.S. Presidentelect Donald Trump takes office in January may also hit growth.

Addressing challenges in the property sector, strengthening social safety nets, and improving local government finances will be essential to unlocking a sustained recovery, Mara Warwick, the World Bank39;s country director for China, said.

It is important to balance shortterm support to growth with longterm structural reforms, she added in a statement.

Thanks to the effect of recent policy easing and nearterm export strength, the World Bank sees China39;s gross domestic product growth at 4.9 this year, up from its June forecast of 4.8.

Beijing set a growth target of around 5 this year, a goal it says it is confident of achieving.

Although growth for 2025 is also expected to fall to 4.5, that is still higher than the World Bank39;s earlier forecast of 4.1.

Slower household income growth and the negative wealth effect from lower home prices are expected to weigh on consumption into 2025, the Bank added.

To revive growth, Chinese authorities have agreed to issue a record 3…