Morgan Stanley downgrades China’s growth outlook

Bank Morgan Stanley has revised its previously published forecast for the Chinese economy to the downside. Now the bank’s analysts expect that in the current quarter, the country’s GDP will show zero growth compared to the previous quarterly period. China’s annual GDP growth forecast was cut by 0.6 percentage points to 3.9%. In addition, Morgan Stanley analysts believe that China will not be able to meet its economic growth goal in 2022. This is due to the worsening epidemiological situation. The authorities will be forced to tighten restrictive measures, which will reduce economic activity in the country. 0.2 percentage points cut the US bank’s forecast for Chinese GDP growth in 2022 to 5.1%. The country’s authorities previously announced that the target economic growth rate in 2022 is 5.5%. China is among the few countries that have declared a lack of tolerance for the pandemic. And this means that with an increase in the number of infections, lockdowns will be introduced.

Source: xCritical.com