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China Likely to Make 5% Growth Its Bottom Line for 2022

  • Housing curbs push expansion below pre-pandemic rates
  • Target will likely need further monetary loosening next year
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China’s Economy Slows as Property Slump Deepens
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China is likely to set a floor for economic growth of 5% next year as it tries to balance a desire to rein in the real-estate sector with the need for stability in a year of crucial political change.

That’s the consensus among economists after year-on-year growth weakened to below that threshold in the second half of this year. The target would represent a sizable drop from pre-pandemic growth rates that were closer to 7%, and reflect expectations that Beijing will persist with its efforts to reduce its reliance on real estate even at the cost of slower growth.