Bloomberg Economics predicts that China will grow only 2%, down from a previously projected rate of 3.6% this year. This downgrading indicates the first time that the world’s second-largest economy has lagged behind that of its rival since 1976 when China was recovering from a decade of Cultural Revolution turbulence.
In comparison, U.S growth is expected to be 2.8%, outpacing its counterpart.
President Biden – said, “For the first time in 20 years, our economy grew faster than China’s.”
Bloomberg Economics lowers its projections following China’s release of worse-than-expected statistics for April while still hinting that the country’s strict anti-Covid measures aren’t going anywhere.
Other researchers echo the downgrading wave of China’s economic growth.
Standard Chartered cut China’s full-year growth forecast to 4.1% from 5%. The rationale behind this comes from stringent Zero-Covid measures taking a heavy toll on business operations, disrupting production and consumption.
Goldman Sachs economists reduce their projections to 4% from 4.5%, citing Beijing’s decision to double down on Covid.
Citi researchers also expect China’s GDP growth to fall from 5.1% to 4.2%, caused by the seemingly prolonged impact of Covid on the economy.
A host of forecasts from different researchers and economists present a pessimistic view regarding the Chinese economy. It will grow well below its official target of 5.5%.
Hu Xijin (胡锡进 húxījìn), former editor-in-chief of the Global Times, posted an article calling it “alarming” and questioning how it is possible to “repeatedly engage in lockdowns and control?”