World Bank raises growth forecast for China to 8.5%



China’s economic recovery this year could be stronger than previously thought.

The on Tuesday raised its growth projection to 8.5 per cent in a new analysis of China’s economic situation – a 0.4 percentage point rise from its previous analysis.

By 2022, the expects growth of 5.4 per cent, which would mark a return to the long-term pre-pandemic trend.

Consumer and business confidence have both recently continued to improve, meaning better labour conditions and rising domestic demand could be expected.

China’s exports are also expected to to perform well, according to the forecast.

However, the bank warned that a new coronavirus outbreak could disrupt economic activities.

A rigorous lockdown and strict entry restrictions since the pandemic began means China has seen hardly any coronavirus cases since around March 2020, apart from minor outbreaks.

Since then, the country’s economy has been on the to recovery.

The government is more cautious in its growth and set its official target for this year at “above six per cent.’’ (dpa/NAN)