According to Nikkie Asia, China’s growth rate this year will be lower than the rest of the emerging Asian economies for the first time in over 30 years.
The news outlet cited a report from the Asian Development Bank (ADB) released on Wednesday. It reported that the bank downgraded China’s growth forecast for 2022 from 5% to 3.3%. In contrast, its forecast for the rest of developing Asia is 4.3%, down from April’s projection of 5.2%.
The bank also lowered its projection for China’s next year’s growth to 4.5% from 4.8%.
It said that lockdowns in China as part of Beijing’s “zero-COVID” strategy are a critical reason impacting the region’s growth.
ADB Chief Economist Albert Park stated, “growth in [China] faces challenges from recurrent lockdowns and a weak property sector.”
The Asian Development Bank, modeled similarly to the World Bank, is a regional entity designed to promote social and economic development in Asia.
Multiple financial institutions have repeatedly kept lowering their forecast for China’s 2022 growth, reflecting a dim outlook for China’s economy.
Earlier this month, Japanese brokerage firm Nomura Securities lowered its forecast for China’s gross domestic product (GDP) to 2.7%, down from 2.8% in August.
In its forecast in August, the U.S.-based investment bank Goldman Sachs also cut China’s 2022 full-year GDP growth projection to 3.0% from the previous 3.3%.
For China’s forecast cut, Goldman Sachs economists cited the COVID control measures, the real estate crisis, and the power shortage due to high temperatures and droughts.
China’s economy grew only 2.5% in the first half of 2022, while its official target is 5.5% for the year.