China's economic growth rate will be the lowest in Asia for the first time since 1990

Mumbai: In the current year, China's economic growth rate will be lower than that of other Asian countries for the first time since 1990. As a result of China's zero-covid policy and the crisis in the property sector, China's economic growth rate is weak, says a World Bank report.

The World Bank has estimated China's economic growth rate for the current year 2022 at 2.80 percent. Earlier in April, the World Bank had put this figure between 4 and 5 percent. In 2021, China's economic growth rate was 8.10 percent, which was the best in a decade.

While China's GDP estimate is being reduced, on the other hand, excluding China, the GDP estimate for Asia has been increased. Asia's GDP estimate for the current year is 5.30 percent.

Last year, the economic growth rate of Asia was 2.60 percent. The situation in China has deteriorated a lot in the last 6 months.

The zero-covid policy has limited mobility and user activity in China. The real estate sector, which accounts for 30 percent of China's GDP, is currently in a booming state.

Some major property developers like Evergrande have defaulted on their payments.

Other rating agencies such as Nomura and Goldman have cut their GDP estimates for China on the assumption that the lockdown measures in China will continue beyond 2022.

The World Bank has also opined that the Chinese government should provide more liquidity to stabilize the property market. Compared to China, demand has increased in Asian countries like India, Indonesia, Philippines, etc., where restrictions like lockdown have been lifted.

Most of the world's central banks are raising interest rates, while China was forced to cut interest rates last month.