The Chinese economy this year will experience a tempered growth weaker than expected, predicted JP Morgan Chief China Economist Zhu Haibin on Thursday.
Speaking during a media briefing, he said that JP Morgan has revised down its GDP forecast for China in 2013 to 7.6 percent from the previous forecast of 8.2 percent amid weak economic data.
“The April data suggests that domestic demand remains on the weak side, and by extension has also caused a softening in the services sector,” said Zhu.
Despite strong growth in real estate and railway investment, investment in the manufacturing sector continued to slow and the recovery in industrial production was weaker than expected, according to the senior economist.
Zhu suggested that the Chinese government continue reducing overcapacity, open more sectors for private investment, encourage research and innovation, and alleviate the burden of companies’ taxation to promote recovery.
via Xinhua
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.
Alfonso Esparza
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Latest posts by Alfonso Esparza (see all)
- Market Rally Still Going Low Holiday Volumes Awaiting Start of 2020 - 27 December 2019
- Market Awaits China Retaliation on Trade - 29 November 2019
- Alibaba to Close Order Book Ahead of Huge IPO - 18 November 2019