The World Bank has 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% from 4.3% predicted in June. It also revised its forecast for next year from 8.1% down to 4.3%.
Both figures are well below Beijing’s GDP growth target of around 5.5% for the year.
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% this year — the lowest in decades — while expecting growth to rise to 4.4% next year.
After years of sudden lockdowns, mass testing, long quarantines and travel restrictions, China this month abruptly abandoned its zero-Covid policy.
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