The US-based organization sees China’s economy grow 4.3 percent next year, down from 8.1 percent.
The World Bank cut its growth outlook for China’s economy, after nearly three years of “COVID-free” curbs and a real estate slump weighing on the world’s second-largest economy.
In its latest forecast on Tuesday, the Washington, D.C.-based organization cut China’s projected growth for 2022 to 2.7%, down from 4.3% in June.
China’s projected growth next year has fallen from 8.1% to 4.3%.
“Economic activity in China continues to track the vicissitudes of the pandemic – outbreaks and slowing growth followed by uneven recovery,” the World Bank said in a statement.
“Real GDP growth is projected to hit 2.7% this year, before recovering to 4.3% in 2023, amid the reopening of the economy.”
China has begun to relax its tough “no COVID” policy after nearly three years of implementing breakthrough restrictive measures, But remaining restrictions and a surge in infections continue to cause pain for struggling businesses.
Mara Warwick, World Bank country director for China, Mongolia and South Korea, said China’s “continued adaptation” to its pandemic policies will be critical to the recovery. economy and public health of the country.
“Accelerated efforts to prepare public health, including efforts to increase immunization, especially among high-risk groups, can help with a safe reopening,” said Warwick. more and less disruptive.
The World Bank said China’s economy also faces significant risks unrelated to the pandemic, including an uncertain global outlook, climate change and “persistent tensions” on the global economy. real estate market amid Beijing’s tightening of excessive lending.
“Continued macroeconomic policy support will be needed, as growth is expected to remain below potential and the environment,” said Elitza Mileva, World Bank chief economist for China. the world is weakening”.
“Directing financial resources to social spending and green investments will not only support short-term demand but also contribute to more inclusive and sustainable growth over the medium term.”