ADB pointed out in its report, China’s property sector has been reeling from defaults and mortgage boycotts, which could also dampen growth. Household demand has been hit by recent Covid-19 outbreaks, which has placed further stress on the property market, it noted. In addition to lockdown-induced weakness in household consumption, a further burden on China’s economy “is that the housing market has not stabilized,” ADB said in the report. ![]() For 2023, ADB lowered its economic growth projection for developing Asia and the Pacific region to 5.2% from 5.3%, while raising the inflation forecast to 3.5% from 3.1%. ![]() ![]() In its flagship report, the “Asian Development Outlook” released on Thursday, ADB said China’s continued “adherence to a zero-covid strategy in response to renewed outbreaks early in 2022 has triggered the reimposition of strict lockdowns.” Amid a slowdown in China, ADB cut Asia’s growth forecast to 4.6% as the prolonged war in Ukraine has pushed commodity prices higher and triggered monetary tightening by many central banks to control inflation. The Asian Development Bank (ADB) has cut its growth forecast for China to 4% in 2022 instead of 5% due to concerns over the country’s zero-Covid approach and strict lockdowns, which has deepened the crisis in already battered real estate sector reeling with a high level of debts and mortgage defaults.
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