The Strategist

Bloomberg forecasts first in 46 years lag in China's economic growth

05/23/2022 - 04:30

According to Bloomberg researchers, China's economic growth may lag behind the United States for the first time since 1976 as a result of the coronavirus quarantine. China's GDP will expand by at least 2%, according to the agency. The economy of the United States is predicted to expand by at least 2.8 percent this year.

According to the Chinese government's official forecast, the country's GDP would expand by 5.5 percent in 2022. The average projection predicts growth of more than 4%. According to Wall Street Journal sources, China's leader Xi Jinping directed authorities in April to make measures to maintain the economy ahead of the United States.

According to Bloomberg, China has had better GDP growth rates since the late 1970s as a result of a "reform and opening up" effort. However, due to the "zero tolerance" policy on the coronavirus (COVID-Zero), which includes lockdowns and quarantine for individuals who come into contact with sick people, the country's economy is in danger this year. Despite rising inflation, the United States manages to keep its economy thriving by increasing worker hiring and consumer spending.

"Even in the best-case scenario, with an implausible weakening COVID-Zero stance, 5% growth, much alone the government's 5.5 percent ambition, appears impossible," Bloomberg analysts wrote in a report.