Skip to content

Morgan Stanley Slashes China GDP Forecast, Citi Warns of Risks

Morgan Stanley cut China’s 2022 economic growth forecast sharply, while Citigroup Inc. warned of risks to the second-quarter outlook as the nation sticks to a strict Covid Zero approach to combat infections. 

Economists at Morgan Stanley led by Robin Xing downgraded their full-year forecast to 4.6% from 5.1% on Friday. China’s “strict adherence” to its no-tolerance policy is expected to stay in the coming months “despite the more transmissible omicron,” they said.