Uncertainty surrounding the country’s real estate sector and, above all, concern about the consequences of the pandemic now mean that the World Bank takes a gloomy view of the world’s second largest economy. For 2022, it is estimated that growth will be 2.7 percent against the previously estimated 4.3 percent. For 2023, the assessment is now 4.3 percent compared to the previous 8.1 percent.
Both forecasts are well below the country’s own assessment of 5.5 percent.
In recent weeks, China has chosen to abandon its strict zero-policy regarding the covid pandemic with mass tests, travel restrictions as well as complete shutdowns. From the outside world, however, people have questioned how well equipped the country is for this change, as a large part of the older population is still unvaccinated.
In addition to these question marks, the World Bank also sees challenges with rising youth unemployment as well as the fact that climate change can cause extreme weather, which in turn can affect the country’s economy.