China GDP: IMF cuts growth forecast to 4.8 per cent, warns property sector pressure a ‘prelude’ to broader slowdown
- China’s zero-Covid policy likely to weigh on consumption and construction prospects, International Monetary Fund says
- Slowdown in China will drag on the global economic recovery from the pandemic, with spillovers to trading partners, the IMF reports
The International Monetary Fund (IMF) on Tuesday cut its forecast for China’s economic growth in 2022 to 4.8 per cent, reflecting disruptions caused by the pandemic and pressure on the country’s property sector.
The IMF slashed its growth forecast by 0.8 percentage points from the previous estimate in October, warning disruption in the housing sector has served as a “prelude to a broader slowdown”.
“With a strict zero-Covid strategy leading to recurrent mobility restrictions and deteriorating prospects for construction sector employment, private consumption is likely to be lower than anticipated,” the IMF said in a report.
But GDP growth in the fourth quarter slowed to 4 per cent year on year, down from 4.9 per cent in the previous three months, hinting at more pain to come in 2022.