The International Monetary Fund (IMF) may have to revise downward its growth forecast for China, where inflexible anti-Covid policy is disrupting economic activity and sparking protests, its director warned on Tuesday.
“Although we forecast growth of 3.2% for this year and 4.4% for the next, it is possible that in this period of great uncertainty we will have to revise these projections downwards,” Kristalina Georgieva said in Berlin during a Press conference with Chancellor Olaf Scholz and several leaders of international organizations.
For her, “two factors are at the origin of this slowdown in growth: the restrictions linked to Covid and the difficulties of the real estate sector”, hit by a succession of developer bankruptcies and difficulties in completing the work.
historical manifestations
China decided this Tuesday to accelerate the vaccination of the elderly against Covid-19, two days after historic demonstrations against health restrictions and for more freedoms.
The Asian giant, however, continues with an inflexible anti-Covid policy, almost three years after the appearance of the first cases in Wuhan (center). These measures, which cause the unexpected closure of companies and factories, penalize activity and travel, and weigh on household consumption.
In the second quarter, China’s GDP came to a standstill like this, growing just 0.4% in a year, its worst performance since 2020. However, it rebounded in the third quarter (3.9%).
Source: BFM TV
