The International Monetary Fund (IMF) reduced its China economic growth forecast for this year by 0.8 percent to 4.8 percent, the IMF said in updated World Economic Outlook on Tuesday.
“The growth forecast for 2022 is revised down relative to October by 0.8 percentage point, at 4.8 percent, with negative implications for trading partners’ prospects,” the report read.
The IMF explained that disruption in the housing sector has served as a prelude to a broader economic slowdown. In addition, private consumption is likely to be lower than anticipated due to recurred mobility restrictions and worsening prospects for employment in the construction sector, the report said.
Lower investment in real estate will also contribute to the decline in economy performance, the report added. In 2023, China is forecast to mark a 5.2 percent growth, which is 0.1 percent less than what was expected in October, according to the report.