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World Bank slashes China growth forecast over Covid damage

World Bank slashes China

The World Bank sharply lowered its annual growth forecast for China warning in a report Wednesday that the Covid cuts could further slow the recovery in the world’s second-largest economy.

China is the last major economy to adhere to a zero Covid policy using rapid lockdowns, batch testing, and strict movement restrictions to stave off outbreaks – but it has shuffled supply chains and plunged economic indicators to their lowest levels in nearly two years.

The World Bank said in a report Wednesday that growth in China is expected to slow to 4.3 percent in 2022, marking a steep 0.8 percentage point drop from the December forecast.

Referring to the highly contagious variant of the coronavirus, the report said, “This largely reflects the economic damage caused by the Omicron outbreaks and the prolonged lockdowns in parts of China that lasted from March to May.”

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