BofA cuts China’s 2023 growth forecast to 5.1%
2023.07.20 00:33
© Reuters. FILE PHOTO: People walk on an overpass past office towers in the Lujiazui financial district of Shanghai, China October 17, 2022. REUTERS/Aly Song/File Photo
(Reuters) – BofA Global Research on Thursday cut China’s economic growth forecast for this year to 5.1% on a disappointing second-quarter gross domestic product (GDP) growth and potential delay in forceful policy response.
The brokerage previously expected the country’s economy to grow at 5.7%.
It also lowered China’s growth forecast for 2024 to 4.8% from the earlier 5%.
“The downward revision reflects our more cautious view on both investment and consumption growth, esp. in 3Q,” the Wall Street bank said in a note.
“But as more signs of growth pressure emerge, policy makers will likely ramp up easing efforts by late 3Q, leading to a modest pick-up of growth momentum in 4Q.”
