World Bank slashes China growth forecasts on COVID woes
BEIJING
The World Bank yesterday slashed its China growth forecast for the year as the pandemic and weaknesses in the property sector hit the world’s second largest economy.
In a statement, the institution slashed its forecast to 2.7 percent from 4.3 percent predicted in June.
It also revised its forecast for next year from 8.1 percent down to 4.3 percent.
Both figures are well below Beijing’s GDP growth target of around 5.5 percent for the year, a figure many analysts believe is now unattainable.
“Economic activity in China continues to track the ups and downs of the pandemic - outbreaks and growth slowdowns have been followed by uneven recoveries,” the World Bank said.
“Real GDP growth is projected to reach 2.7 percent this year, before recovering to 4.3 percent in 2023, amid a reopening of the economy.”
After years of sudden lockdowns, mass testing, long quarantines and travel restrictions, China this month abruptly abandoned its zero-COVID policy.
But disruption to businesses has continued as cases surge and some restrictions remain in place.
Health authorities have admitted that official figures no longer capture the full picture of domestic infections now that mass testing requirements have been dropped.
Last week the IMF warned it too would likely downgrade its projections for China again, blaming a predicted continued rise in cases.
The fund cut its growth projection for China in October to 3.2 percent this year - the lowest in decades - while expecting growth to rise to 4.4 percent next year.
