Ultimate magazine theme for WordPress.

Live news updates: Asian markets mostly down as investors cautious after US sell-off

0 3

China’s economic output will lag behind the rest of Asia for the first time since 1990, according to new World Bank forecasts that highlight the damage wrought by Xi Jinping’s zero-Covid policies and the meltdown of the world’s biggest property market.

The World Bank has revised down its forecast for gross domestic product growth in the planet’s second-largest economy to 2.8 per cent compared with 8.1 per cent last year, and down from its prediction made in April of between 4 and 5 per cent.

At the same time, expectations for the rest of east Asia and the Pacific have improved. The region, excluding China, is expected to grow at 5.3 per cent in 2022, up from 2.6 per cent last year, thanks to high commodity prices and a rebound in domestic consumption after the pandemic.

“China, which was leading the recovery from the pandemic, and largely shrugged off the Delta [Covid variant] difficulties, is now paying the economic cost of containing the disease in its most infectious manifestation,” Aaditya Mattoo, the World Bank’s chief economist for east Asia and the Pacific, told the Financial Times.

China had set a GDP target of about 5.5 per cent this year, which would have been a three-decade low. But the outlook has deteriorated markedly over the past six months.

Xi’s policy of relentlessly suppressing coronavirus outbreaks through snap lockdowns and mass testing has restricted mobility and sapped consumer activity just as China’s property sector — which accounts for about 30 per cent of economic activity — suffers a historic collapse.

Read more about the World Bank forecasts here.

Leave A Reply

Your email address will not be published.