China’s economic growth lags that of other Asian countries

The Asian Development Bank (AfDB) sharply revised its growth expectations for China in 2022 on Wednesday September 21. While in April it estimated possible economic growth of 5% this year, the new estimate is only 3.3%. Growth in the Asian economy in general should therefore also be weaker than expected: 4.3% in 2022 (instead of 5.2%), 4.9% in 2023 (instead of 5.3 %).

“For the first time in thirty years, China’s economic growth will be lower than that of other developing countries in Asia,” reports the economic newspaper Hong Kong Economic Times. According to AfDB Chief Economist Albert Park, China’s economic slowdown is mainly linked to the “dynamic zero Covid” policy, which has “shaken Chinese consumer confidence, created bottlenecks in supply chains and hurt other economies”.

“Ideology trumps economics”

The Hong Kong newspaper Mingpao note that the ADB’s economic growth discounts for Hong Kong have meanwhile been divided by ten, from 2% to 0.2%. “But consumers for next year remain the same at 3.7%,” specifies the daily. The newspaper points out that “increasing risks such as central bank monetary policy tightening [américaine]the war in Ukraine and the confinements in mainland China, due to its health policy to fight the epidemic [de Covid-19]”, are the causes of the economic slowdown.

In a second article, Mingpao take up a statement by Jörg Wuttke, President of the European Union Chamber of Commerce in China, on one of the pillars of Chinese economic development: foreign investment. According to him, foreign businessmen have come to China for its market. Or, “because of the ideology [du régime de Xi Jinping]this market is shrinking,” and “Ideology trumps economics.” Also according to Jörg Wuttke, European companies remain ready to contribute to the development of the Chinese economy, but due to the increasing closure of the Middle Kingdom, European companies find it difficult to foresee political and economic risks. Result: they “do not intend to increase their investments at this time”.

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