Barclays and Nomura economists have revised their estimates of China’s GDP growth downwards.
In particular, Barclays has cut its outlook on Chinese GDP for 2023, forecasting an annual growth rate of +5.3%, compared to the +5.6% previously expected.
Second quarter GDP estimates have been revised downwards from +8.4% to +7.8% on an annual basis.
Barclays cited weakening demand in both the housing market and consumer spending.
Nomura also reduced his outlook on Chinese GDP growth.
Now economists are predicting an expansion of 5.5% for 2023, compared to the previous +5.9%.
Nomura justified the downgrade with the fact that the recovery linked to the reopening of the post-lockdown economy from Covid “is fading”.
China’s 2024 GDP estimates were thus cut from the previously forecast growth of +4.4% to 4.2%.