China’s reopening brings both risks and opportunities, Asian Development Bank (ADB) says  

• China’s reopening could bring opportunities as well as risks to its economy, Albert Park, chief economist at the Asian Development Bank told CNBC. Although the lifting of COVID restrictions in China would boost growth prospects for the country and other economies, it could also lead to an increase in COVID-19 cases.
• There could be “waves in different parts of the country at different times,” Park said. “And there’ll be a strong temptation by the government to reimpose controls or step back. That could be very disruptive for economic activity.” But that is the price the government would have to pay if it wants the country to open up and transition back to life without the zero-Covid policy, he added.
• This week, ADB downgraded its 2022 growth forecast for China to 3% from its previous projection of 3.3%. It also predicted China’s economy would grow by 4.3% in 2023, downgrading its September growth estimates of 4.5%.
• Recurring lockdowns in China are one of the three big headwinds that are slowing down the region’s recovery from the pandemic, according to ADB. Monetary policy tightening by central banks around the world and the prolonged Russia-Ukraine war are factors contributing to slower growth as well, the bank said.

(Source: CNBC)