Chinese economy expected to grow 2.7% this year, 4.3% next year, according to World Bank’s latest report
The World Bank on Tuesday cut China’s growth forecast both for 2022 and 2023, citing domestic and external conditions which weaken economic outlook.
The Chinese economy is projected to grow 2.7% this year according to the bank’s December economic update. The previous forecast was a 2.8% growth for 2022.
The growth is expected to recover to 4.3% next year amid a reopening of the economy, revised down from 4.5% in the bank’s previous report.
The World Bank warned that the outlook was subject to significant risk.
“Recurrent COVID-19 outbreaks, the possibility of renewed mobility restrictions and precautionary behavior to slow the spread of the virus could lead to longer-than-expected disruption in economic activity,” it said.
“Persistent stress in the real estate sector could also have wider macroeconomic and financial spillovers,” the bank added.