(Bloomberg) -- Nomura Holdings Inc. lowered its forecasts for China’s economic growth for this year and next, citing a “slow, costly and bumpy” reopening of the country as Covid cases surge.
This year’s estimate was cut slightly to 2.8% from 2.9%, while next year’s projection was lowered to 4% from 4.3%, Nomura’s economists wrote in a note Thursday. The forecasts are below the median estimates of 3.3% for 2022 and 4.8% for 2023 in a Bloomberg survey of economists.
China’s reopening next year could be “back and forth” as officials may backtrack if Covid cases skyrocket, Nomura said. The investment bank’s lockdown index suggests 21.1% of China’s total gross domestic product is now under lockdown, up from only 9.5% at the end of October.
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