World Economic Prospects: China triggers a further downgrade to the outlook

May/June 2022

• Ongoing lockdowns and restrictions in China have prompted us to lower our Chinese GDP growth forecast for this year and become more pessimistic about the easing of global supply chain bottlenecks.
• Therefore, we have lowered our global GDP growth forecasts by 0.4ppts to 3% in 2022 and by 0.1ppt to 3.1% in 2023.
• A range of timely activity indicators confirms that China’s zero-tolerance approach to Covid is taking a heavy toll on the economy.