End of the zero-COVID policy in China made forces analysts to adjust forecasts

Chinese authorities suddenly ended the zero-COVID policy, and it forced economists to change dramatically their growth forecasts for the current and next year.   

On Friday, UBS Group AG и Australia & New Zealand Banking Group Ltd. were the last ones who adjusted forecasts on economic growth down to 2.7%. It was caused by rapid spread of coronavirus. Forecasts for economic growth for next year turned out to be 5% and more. Analysts expected that consumer and business inflation would return to the previous level after the decline caused by the COVID epidemic.

UBS economists say that citizens should follow safety measures and reduce visiting public events. They expect the economic activity to recover from the beginning of 2023 after the first wave of disease. 

Amid the removal of anti-COVID restrictions in China, other major banks, for example, Goldman Sachs Group Inc. reviewed their forecasts concerning the growth in this and the new year. 

According to consensus projections presented in Bloomberg’s survey, the economic growth might be 4.8% this year and 3.2% next year.