The Peterson Institute for International Economics (PIIE) released its semi-annual Global Economic Prospects report on Tuesday, offering a tempered outlook for China’s economy. According to the Washington-based think tank, China’s GDP growth is expected to decelerate from 5 percent in 2025 to 4.6 percent this year, with further cooling to 4.3 percent by 2027.

The report identifies two primary factors contributing to this trend: a persistent lack of domestic consumer demand and a projected decline in the strength of China's exports. While the global economy is described as remaining resilient, China’s internal economic conditions are expected to weigh on its overall performance. The PIIE analysis suggests that the country is entering a period of sustained, lower-level growth compared to its previous benchmarks. This projection highlights a divergence between China's domestic economic trajectory and the broader, more stable outlook for the global economy as a whole.