The World Bank announced that economic growth in East Asia and the Pacific will weaken sharply in 2022 due to a slowdown in China, but growth will accelerate next year.
The Washington-based lender said in a report that it expects 2022 growth in East Asia and the Pacific, including China, to slow to 3.2% from its forecast of 5.0% in April and a 7% increase in the previous year. .2%.
The World Bank said the weak outlook was mainly due to a sharp slowdown in China caused by its strict Corona virus containment rules, called the zero-spread Covid policy, which disrupted industrial production, domestic sales and exports.
China, which accounts for 86 percent of the region’s 23-country economic output, is expected to grow 2.8 percent this year, much slower than the bank’s previous forecast of 5.0 percent. In 2021, the Chinese economy grew by 8.1%, its best growth in a decade.
The world’s second largest economy is expected to grow by 4.5% by 2023.
Another danger to the region’s outlook is the sharp increase in interest rates that central banks around the world are deciding to fight against soaring inflation. The World Bank said this caused capital outflows and depreciation of currencies.
Source: El Iktisad
