World Bank slashes China growth forecasts 

TUE, DEC 20, 2022 - 02:05 PM

THE World Bank on Tuesday (Dec 20) 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 per cent from 4.3 per cent predicted in June.

It also revised its forecast for next year from 8.1 per cent down to 4.3 per cent.

Both figures are well below Beijing’s stated gross domestic product (GDP) growth target for this year of around 5.5 per cent, 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 in a press release.

“Real GDP growth is projected to reach 2.7 per cent this year, before recovering to 4.3 per cent in 2023, amid a reopening of the economy.”