Bank of America cuts China’s 2023 growth forecast to 5.1%

INTERNATIONAL DESK: 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.” (REUTERS)