China GDP: IMF slashes growth forecast as coronavirus outbreaks, zero-Covid policy ‘increase uncertainty’
- The International Monetary Fund has cut China’s gross domestic product growth estimate from 4.8 per cent to 4.4 per cent
- The revision comes amid intense efforts by state media to play down concerns about the country’s slowing growth outlook
China’s economy could endure more pain in coming weeks as Beijing pushes to eliminate coronavirus outbreaks, the International Monetary Fund (IMF) said on Tuesday, as it slashed this year’s growth forecast for the world’s second largest economy.
The IMF revised down China’s gross domestic product (GDP) growth estimate for 2022 from 4.8 per cent in January to 4.4 per cent, citing a “worsening” economic slowdown.
The IMF expects a prolonged downturn in China that could expose structural weaknesses such as high local government liabilities, property developer leverage, household debt and a fragile banking system.
“In addition, the combination of more transmissible variants and the strict zero-Covid policy could continue to hamper economic activity and increase uncertainty,” the IMF said in its latest World Economic Outlook.
“Larger disruptions could impact key commercial activities, including through port lockdowns.”
The revision comes as Beijing scrambles to counter economic headwinds and amid intense efforts by state media to play down concerns on the growth outlook.
