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.
