Economists at JPMorgan said that amid the Chinese government's commitment to a zero-tolerance policy on the coronavirus, the economy will grow at a weaker pace than previously expected.
According to JPMorgan forecasts, in the 4th quarter of 2022, China's gross domestic product will increase by 2.4% in quarterly terms, which is more than twice lower than the previous forecast (+5.2%). Meanwhile, the GDP growth forecast for 2022 has been revised down to 2.9% from 3.1%. As for 2023, economists expect the economy to expand by 4% (previous forecast: +4.5%).
Yesterday, the IMF reported that it forecasts China's GDP growth by 3.2% in 2022, which is the second lowest level since 1977, reflecting the impact of the zero-Covid lockdowns on mobility and the crisis in the real estate sector.