Fitch Ratings lowered China’s economic growth projections for 2021 and 2022 as a slowdown in the property market weighs on domestic demand.

       Gross domestic product is forecast to expand 8.1 per cent this year, down from a previous projection of 8.4 per cent, while the forecast for 2022 was cut to 5.2 per cent from 5.5 per cent, the ratings company said, based on its global report released last week.

       The cooling in the property sector is the key driver behind the forecast downgrades, although pandemic-related restrictions imposed in July and August also weighed on China’s recovery, it said.

       It said that residential investment directly accounts for about 10 per cent of GDP and property activity has large spill-overs to other industries.

       It added that the economic slowdown has already prompted a recalibration of macroeconomic policy settings, such as a call for acceleration in special bond issuance.