Sluggish growth is expected to pile pressure on Chinese leaders, especially ahead of the 20th party congress and a reshuffle of top politicians.
BNP Paribas told The Telegraph: “We expect policy measures to push next year’s reported GDP growth above five percent. Without it, continued weakening momentum and concerns about property investment would risk keeping organic growth substantially below the policymakers’ threshold.
“We think political pressure for healthy and stable growth is imminent and will intensify ahead of the 20th party congress in late autumn 2022.”
Initiatives designed at boosting growth may be rolled out in the face of the downcast projection, including looser credit and lending standards, greater infrastructure and manufacturing funding and easing zero Covid rules to boost spending.