The Economic Crisis of China
China’s economy is projected to slow in 2022. After a strong start in early 2022, the largest COVID-19 wave in two years has disrupted China’s growth normalization. We project real GDP growth to slow sharply to 4.3 percent in 2022 – 0.8 percentage points lower than projected in the December China Economic Update. This downward revision largely reflects the economic damage caused by Omicron outbreaks and the prolonged lockdowns in parts of China from March to May. Growth momentum is expected to rebound in the second half of 2022, helped by aggressive policy stimulus to mitigate the economic downturn.
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