JPMorgan cuts China growth forecast for fifth time since August

JPMorgan cuts China growth forecast for fifth time since August

JPMorgan cuts its fourth quarter growth forecast for China to 4.0% quarter-on-quarter from 5.0% on Friday, citing the impact of power shortages and the recurrence of COVID-19 clusters hitting consumer spending and services.

“Looking back, we have downgraded China’s growth forecasts five times since August,” JPMorgan’s Haibin Zhu said in a note, adding the bank now expected full-year growth of 7.8% and 4.7% in 2022.

“In particular, to smooth out COVID-related volatility, we note that the pace of average annual GDP growth (compared to two years ago) has decelerated notably.”

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