In light of the limits put in place to battle the Kofid epidemic and the effects of the real estate crisis, China will hold the Communist Party conference numbers of independent economic growth on Tuesday. This growth is predicted to be one of the weakest since 2020.
The official percentage of growth in the third chapter of the year is revealed with a set of economic indicators, while the party conference in Beijing is expected to be granted a third unprecedented state to President Xi at the head of the party and thus at the head of the country.
Twelve experts were gathered by Agence France-Presse to discuss how to boost the second-largest economy in the world’s gross domestic product, which increased by an average of 2.5% annually from July to September.
After 4.8% increase in the first chapter, the growth in the previous chapter had decreased to only 0. 4% at an annual pace, recording the poorest performance since 2020.
Many experts believe China will struggle to meet its “around 5%” growth target for this year. Be aware that the International Monetary Fund has lowered its forecasts for the GDP this year and the following year to 3.2% and 4.4%, respectively.
According to analysts consulted by Agence France-Presse, the average projection for 2022 is 3%, a significant increase from the 8.1% achieved in 2021. This will be the weakest pace of growth in four decades in China, with the exception of the Coveyd-19 outbreak period.
“The political challenge lies in acknowledging that the economy has reached a specific level of maturity and that growth numbers will remain permanently” below 5% for the next decade, “said analyst Clavord Bennett of the AC Wi -Sikiitees office.
The “Safar Kovid” policy that the authorities follow has also hurt the economy.
In contrast to the major economic players, the Asian behemoth continues to follow a very severe health policy that mandates a healthy stone for anybody who discloses an injury and closure measures that cover cities and towns and mandate checks before entering public spaces.
This approach frequently results in the closure of businesses and factories, reducing economic activity and transportation. It also has a significant impact on how much families consume.
Ting Lu, a Nomura specialist who focused on the economy, cautioned that there was “no hint of moderating the Policy of Safar Kovid,” pointing instead to a tightening of the application of health measures.
This week, the state press declared that the virus’s relaxation will be “irresponsible,” shattering any notion that things might quickly return to normal.
Recently, fresh injuries have surfaced, raising concerns about the possibility of extreme restrictions resuming, particularly in Shanghai, China’s commercial and financial hub, where in the spring there were two months of stringent closures.
As China’s economy struggles, Xi Jinping is about to begin his third term as president.
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