WB Lowers China's Economic Growth Forecast to 5% for This Year

Published 05 Apr.2022 14:17(KST)

[Asia Economy Reporter Kim Hyunjung] The World Bank (WB) has revised down China's economic growth rate for this year to 5% in light of the impact of Russia's invasion of Ukraine.

On the 4th (local time), Reuters reported that the WB, in its report, highlighted the Chinese government's stimulus measures that could offset the negative shocks and adjusted the growth rate estimate from the previous 5.4% to 5.0%.

Aditiya Matu, WB Senior Economist for East Asia and the Pacific, stated, "The region is facing shocks that are worsening growth momentum," mentioning the COVID-19 pandemic, China's structural growth slowdown, and inflation triggering US monetary tightening.

He also noted that the impact of the war on the East Asia and Pacific economies will vary depending on exposure and resilience, forecasting a growth rate of around 4.8% for the rest of the region excluding China.

Manuela Pero, WB Vice President for East Asia and the Pacific, explained, "While the East Asia and Pacific economies are recovering from the shocks caused by the pandemic, the Ukraine war is weighing down growth momentum," adding, "The region's strong fundamentals and sound policies will help navigate through this storm."