According to NTDTV, China’s Zero-COVID policy based on lockdown has been causing a lot of damage to China’s economy. Because of this, two banks, Goldman Sachs and ADB, have lowered their GDP growth forecasts for China.
On September 21, Goldman Sachs reduced its forecast for China’s GDP in 2023 to 4.5% from 5.3% previously.
Goldman Sachs kept its 3% GDP growth forecast for China in 2022. Meanwhile, China’s regime expects China’s GDP to grow at 5% this year.
The report by Goldman Sachs believes that Chinese Communist Party (CCP) authorities will continue to maintain the Zero-COVID policy until at least the first quarter of 2023.
Goldman economists have shown that they don’t believe the Zero-COVID policy is effective. They assess that China is still likely to face an increase in the Covid-19 outbreak after a full reopening.
According to CNBC, the Asian Development Bank (ADB) also lowered China’s GDP growth forecast for this year and the following year in a report on Wednesday, September 21.
Accordingly, ADB forecasts that China’s GDP this year will only grow at 3.3%. Earlier, in July, ADB lowered China’s GDP forecast for 2022 from 5% to 4%. ADB also downed China’s GDP forecast for 2023 from 4.8% to 4.5%.
Regarding the rate of price increase, ADB’s report estimates this index in China will jump even faster and will reach 4.5% in 2022 and 4% in 2023. Before that, in July, ADB forecasted this index is 4.2% and 3.5%, respectively.