World Bank cuts growth forecasts for China due to Covid, property woes; IMF slash to follow

The World Bank lowered its China growth forecast for the year from 4.3 percent predicted in June to 2.7 percent due to the impact of the pandemic and property sector weaknesses on its economy.

The institution also slashed its forecast for next year from 8.1 percent down to 4.3 percent.

Many analysts believe that China's GDP growth target of around 5.5 percent for the year is now unattainable.

According to the World Bank, outbreaks and growth slowdowns in China have been followed by uneven recoveries.

Disruption to businesses has continued in China as cases surge and some restrictions remain in place.

Health officials have acknowledged that since bulk testing criteria were removed, official data no longer accurately reflect domestic infections.

The IMF forewarned last week that it will likely also reduce its predictions for China, blaming a sustained rise in cases.

The fund revised its growth forecast for China in October, lowering it to 3.2 percent this year, the lowest level in decades from the 4.4 percent it expected the previous year.

According to IMF chief Kristalina Georgieva, they are very likely to downgrade the growth projections for China, both for 2022 and 2023,

As China moves forward with the reopening, experts worry that it is ill-prepared to handle the next wave of diseases since millions of susceptible elderly people have not yet had all of the recommended vaccinations.