Beijing: A sudden easing of strict COVID-19 control measures and the current weakness of the real estate market are responsible for the World Bank's downgrade in China's growth outlook for this year and next.

In a report released on Tuesday, the Washington-based lender predicted China's economy would expand 2.7% in 2022 before rebounding to 4.3% in 2023 as it reopened after the worst of the pandemic .

The bank's projected growth in 2022 will be much lower than the official target of around 5.5%.

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The World Bank had projected China's growth rate to be 2.8% this year and 4.5% in September next year.

According to the bank's report, "China's growth outlook is subject to significant risks stemming from the uncertain pandemic trajectory, how policies evolve in response to the COVID-19 situation, and the behavioral responses of households and businesses."

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"The ongoing stress in the real estate industry could have wider macroeconomic and financial spillovers."

According to the lender, China also faces highly uncertain global growth prospects and increased geopolitical tensions.

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At a time when the global economy is weakening, the increase in COVID-19 infections is having a negative impact on exports. Last week, Chinese leaders pledged to step up policy adjustments to support the slowing economy.