Analysts at leading investment bank Goldman Sachs wrote in a note to clients. Chineseupdated their forecasts.
According to a note shared by experts in the past hours, the US bank Asian giant real GDP cut its growth forecast from 6% to 5.4%. Bank officials expect China to grow by 4.5% in 2024. Goldman Sachs’ previous 2024 forecast was for 4.6% growth.
Renowned economist Hui Suan and his team pointed to the real estate market for their bearish prospects. Emphasizing that the negative effects on growth will be permanent, economists think that the government does not give sufficient incentives due to economic concerns.
Chinese government COVID-19 Has had to use a full-shutdown weapon in battle with. Authorities took strict measures to prevent the spread of the disease, causing thousands of factories to shut down for weeks. After the end of the pandemic process, the Chinese economy re-activated. However, this change does not occur to the extent that economists expect.
China Central Bank Lowered Interest Rates!
The Jinping government decided to push the button after the negative trade data. dissatisfied with economic growth Bank of China met last week. As a result of the meeting, the Bank reduced the benchmark interest rate from 2.75% to 2.65%. Emphasizing the growth target after the meeting, PBOC officials are making moves to facilitate commercial loans.
According to the latest data, the country’s annual exports decreased by 7.5% compared to the previous period. The decline in imports, on the other hand, was limited to -4.5%, despite the -8% expectation. Leading investment banks predict that the Chinese yuan will depreciate against the dollar in the coming period.
