Morgan Stanley cut its economic growth forecast for China to zero for the current quarter versus the final three months of 2021 and predicts Beijing will miss its annual target this year thanks to restrictive policies to bar the spread of Covid.
The Wall Street bank lowered its 2022 forecast to a 5.1% gain for gross domestic product -- down from 5.3% previously and below the Chinese leadership’s target of about 5.5%. It previously saw GDP rising 0.6% this quarter compared with the previous three months. Year-on-year, it now expects GDP growth of 3.9% this quarter, down from 4.5% seen earlier.
