Forty economists forecasted the growth of China’s economy in the third quarter was 3.4%, which is far from the planned development, reports Reuters.
China’s economic growth rate was only 2.5% in the first half of this year. In the second quarter, the year-on-year growth rate was only 0.4%. There is a massive gap from the 5.5% economic growth target set by the Chinese government for this year.
Experts further predict that growth in the fourth quarter may increase to 3.8%, which would be China’s slowest growth rate in 46 years.
Experts believe the main reason for the drag on China’s economic growth is the strict epidemic policy.
Many places in China’s core economic zones implemented large-scale city closures in the year’s first half. This is leading to the closure of a large number of enterprises. Many workers are unemployed, and supply chains have collapsed.
In addition, under the influence of the 20th National Congress, local governments strictly clean up the protests. The result is slow economic growth.
Nie Wen, a macro analyst, said he is not optimistic about China’s economic outlook, and China’s economy will be tough to recover strongly.
Eswar Prasad, a former head of the International Monetary Fund, pointed out that domestic problems and conservative policies will affect China’s economy.
On October 11, The International Monetary Fund predicted China’s economy would grow by 3.2% this year.