World Bank Cuts China Growth Forecasts on Property Slump, Reopening Complications

What’s new: The World Bank has cut its China growth projections for this year and next, citing the possibility of longer-than-expected economic disruption amid a surge in Covid cases during reopening and a prolonged downturn in the property sector.

China’s real GDP growth is expected to slow to 2.7% in 2022, before rebounding to 4.3% in 2023, the World Bank said in a report released Tuesday. In September, the bank projected China’s economy will expand by 2.8% in 2022 and 4.5% next year. The country’s GDP grew 8.1% last year thanks to a low comparison base.