The World Bank has cut its China growth outlook for this year and next, citing the impact of the abrupt loosening of strict COVID-19 containment measures and persistent property sector weakness, reports Reuters. The Washington-based lender, in a report released on Tuesday, said it expected China’s economy to grow 2.7% in 2022, before recovering to 4.3% in 2023 as it reopens following the worst of the pandemic.
The bank’s expected expansion for 2022 would be well below the official target of around 5.5%. In September, the World Bank forecast China’s growth at 2.8% this year and 4.5% next year.
“China’s growth outlook is subject to significant risks, stemming from the uncertain trajectory of the pandemic, of how policies evolve in response to the COVID-19 situation, and the behavioral responses of households and businesses,” the bank said in its report.