Investment Banks Slash Expectations for China's Economic Outlook — One Sees GDP Growth of Less Than 4%

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Investment Banks Slash Expectations for China's Economic Outlook — One Sees GDP Growth of Less Than 4%
Nederland Laatste Nieuws,Nederland Headlines

Several investment banks have cut their China growth forecasts as Covid lockdowns drag on in the economic hub of Shanghai.

the national capital, began three days of mass testing on Monday and closed non-essential businesses in one area to control a spike in cases over the weekend.Among nine financial firms, UBS cut its China GDP growth target the most, down by 0.8 percentage points to 4.2% based on"intensified downward pressure on the economy."

Bank of America's China economist Helen Qiao made the second-largest cut, down by 0.6 percentage points to 4.8%. "In our view, even if such control measures will ultimately be rolled back and economic activities will gradually normalize by mid-year, a heavy toll on growth already seems inevitable," the report said.Allianz Trade's forecast reduction marked the second cut in just a few months.

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Nederland Laatste Nieuws, Nederland Headlines

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