The World Bank cut its growth forecast for China this year to 2.7% as the pandemic and property sector crisis hit the world’s second-largest economy.
The institute had estimated in June that the Chinese economy would increase by 4.3% this year. It also reduced its growth outlook for next year from 8.1% to 4.3%.
Both figures are far below Beijing’s official GDP growth projection for this year of approximately 5.5%, which many analysts believe is already out of reach.
“Economic activity in China continues to track the ups and downs of the pandemic — outbreaks and growth slowdowns have been followed by uneven recoveries,” the World Bank said in a press release on Tuesday.
“Real GDP growth is projected to reach 2.7% this year, before recovering to 4.3% in 2023, amid a reopening of the economy.”