Business & Economy

World Bank slashes China’s growth forecast for 2023

Shanghai, China, Dec 20 (EFE).- The World Bank on Tuesday slashed its 2023 growth forecast for China from 4.5 percent to 4.3 percent amid uncertainty ahead of the country’s reopening after almost three years of harsh restrictions under its stringent “zero covid” policy.

The institution also lowered its forecast for the current fiscal year, to 2.7 percent, 0.1 less than the forecast released in September and 1.6 below that published in June.

In 2024, the GDP growth of the Chinese economy would pick up to reach up to 5 percent, according to the World Bank.

Mara Warwick, World Bank Country Director for China, Mangolia and Korea said it was important to see how the Asian giant adapted its anti-pandemic strategy to the reopening of the country in order to avoid risks to public health and disruptions to economic activity.

“Continued adaptation of China’s Covid-19 policy will be crucial, both to mitigate public health risks and to minimize further economic disruption,” Warwick said.

“Accelerated efforts on public health preparedness, including efforts to increase vaccinations especially among high-risk groups, could enable a safer and less disruptive re-opening,” Warwick added.

The World Bank also warned of other “significant stress” to the Chinese economy, including “persistent” problems in the real estate sector and changes in weather patterns such as those recorded this year.

“Continued macroeconomic policy support will be needed, as growth is expected to remain below potential and the global environment is weakening,” said World Bank Lead Economist for China, Elitza Mileva.

The report also warned of rising youth unemployment, which reached a record high of almost 20 percent around the middle of the year.

In this regard, it recommended structural measures to strengthen the skillset of youth, improve labor market mobility, address information asymmetries, and strengthen labor market statistics. EFE


Related Articles

Back to top button