World Bank slashes China’s growth figures

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World Bank slashes China’s growth figures

World bank, China, economic growth, global economic growth, developing countries, advanced countries, Omicron variant, Coronavirus pandemic
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Highlights

  • In a recently released report, World Bank has slashed its forecasts for China’s economic growth.
  • The World Bank has downgraded China’s GDP growth estimate to 8% for 2021, from the earlier forecast of 8.5%, with the economy anticipated to slow to 5.1 % in 2022, against 5.4%.
  • Global economic growth is expected to decline drastically to 4.1% in 2022 compared to 5.5% last year and drop further to 3.2 % in 2023.

Coronavirus pandemic has played havoc on world economies. As the new year began, people globally were optimistic and had high hopes that their lives would be restored to normal, and their Country’s economy would come on track. However, it does not seem so.

In a recent development, the World Bank has slashed its forecasts for China’s economic growth and warned that new coronavirus outbreaks, high debt and continuous supply chain bottlenecks would endanger economic activity, especially in developing economies. 

The international financial institution has downgraded China’s GDP growth estimate to 8% for 2021, from the earlier forecast of 8.5%, with the economy anticipated to slow to 5.1 % in 2022, against 5.4%. Though, it has kept its forecast for 5.3% growth in 2023 unchanged. Besides, the World Bank has also lowered economic activity projections in the United States and euro area while issuing a warning of further downgrade risks worldwide because of the rapid spread of the omicron variant. 

COVID-19 has resulted in over 300 million infections and approximately 6 million deaths globally. While 59% of the world’s population has received at least one jab, less than one in 10 people in countries with low-income have received a single dose. 

Cities across China are levying stricter restrictions to control new Coronavirus outbreaks, with Tianjin the most recent to join the battle against the highly infectious omicron variant. 

Global economic growth is anticipated to decline drastically to 4.1% in 2022 compared to 5.5% last year and drop further to 3.2 % in 2023 as the growing demand for goods and services disappears and fiscal & monetary support fades out.

The World Bank report released Tuesday held that inequality between and within countries and inflation both in developed and emerging economies will complicate economic recovery.

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