China Economic Update - June 2022 : Between Shocks and Stimulus - Real Estate Vulnerabilities and Financial Stability in China
After a strong start in early 2022, the largest COVID-19 wave in two years and resulting mobility restrictions have disrupted China’s growth normalization. The global environment has also significantly worsened following Russia’s invasion of Ukrain...
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| Format: | Report |
| Language: | English |
| Published: |
Washington, DC
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099640106102210762/P17579708f26d5018098840f1ad978bb54b http://hdl.handle.net/10986/37530 |
| Summary: | After a strong start in early 2022,
the largest COVID-19 wave in two years and resulting
mobility restrictions have disrupted China’s growth
normalization. The global environment has also significantly
worsened following Russia’s invasion of Ukraine. Real gross
domestic product (GDP) growth is projected to slow sharply
to 4.3 percent in 2022. In the face of domestic and external
headwinds, China's policymakers should carefully
calibrate its policies. In the short term, China should
balance COVID-19 mitigation with supporting economic growth.
Over the medium term, greater efforts are needed to shift
away from the old playbook of stimulus-led investment to
boost economic growth. Decisive action to encourage a shift
toward consumption, tackle social inequality, and rekindle
innovation and productivity growth would help achieve a more
balanced, inclusive, and sustainable growth trajectory for China. |
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