World Bank cuts China growth forecast

The World Bank lowered its growth expectation for the Chinese economy from 4.5 percent to 4.3 percent by 2023.

In the statement issued by the bank, it was indicated that internal and external conditions caused the economic outlook to weaken in China.

Stating that economic activity in China continues to follow the ups and downs of the epidemic, it was pointed out that the slowdown of the epidemic and the growth rate were followed by a patchy recovery.

In the statement, it was reported that the Chinese economy is expected to grow 2.7 percent this year and 4.3 percent next year.

THE UNCERTAIN TENDENCY OF THE EPIDEMIC IS EFFECTIVE

The World Bank, in its forecasts announced in September, had predicted that China’s economy would grow 2.8 percent this year and 4.5 percent next year.

Stating that China’s economic growth prospects are exposed to significant risks from the uncertain course of the epidemic, it was said that the ongoing stress in the real estate sector may have broader macroeconomic and financial effects.

In the statement, it was noted that climate change-related risks have also increased, and it was claimed that risks outside the country were caused by extremely uncertain global economic growth expectations, tightening financial conditions more than expected and increasing geopolitical tensions.

INCREASE IN YOUTH UNEMPLOYMENT

Employment subsidies and public employment programs provide short-term support for youth employment, according to the statement.

The statement explained that short-term measures can be complemented by structural measures to strengthen youth skills, improve labor market mobility, address information asymmetries, and strengthen labor market statistics. (AA)