Array
Amid multiple domestic and international reverses due to its zero-Covid policy and assertiveness, China is unlikely to meet its estimated GDP growth rate, according to World Bank’s latest Global Economic Prospects report.
In China, growth is projected at 4.3 per cent in 2023–0.9 percentage points below previous forecasts. The second-largest economy in the world is now falling back in the race.
Global growth is slowing sharply in the face of elevated inflation, higher interest rates, reduced investment, and disruptions caused by Russia’s invasion of Ukraine, according to the World Bank’s latest Global Economic Prospects report.
According to the World Bank reports, China’s high growth rate, based on investment, low-cost manufacturing and exports, has reached its limits and has led to economic, social and environmental imbalances, reported Financial Post.
Reducing these imbalances requires shifts in the structure of the economy from manufacturing to high-value services, from investment to consumption, and from high to low carbon intensity; none of which seems to be the priority of the mandarins of the ruling Communist Party of China.
