The economic forecast is mixed for China. The official target announced in March 2022 is for the country to hit 5.5% gross domestic product (GDP) growth for 2022. However, international agencies are more pessimistic. Goldman Sachs announced in May 2022 it was cutting its forecast for China from 4.5% to 4% for the year, with Citi similarly reducing its forecast by almost a full percentage point from 5.1% to 4.2%.
Andrew Fennell, senior director, sovereign ratings at Fitch Ratings, says the agency does not think the 5.5% target is achievable, and has revised down the growth forecast for the year from 4.3% to 3.7%. Vivian Xue, director of financial institutions at Fitch Ratings, adds that the “increasing downside risks” will have an impact, coupled with the “cautious pace at which Covid-related restrictions have been eased”.
