Jul 19 (Reuters) – BofA Global Research on Thursday cut China’s economic growth forecast for this year to 5.1% amid disappointing second-quarter gross domestic product (GDP) growth and a potential slowdown in a strong policy response.
The brokerage previously expected the country’s economy to grow by 5.7%.
It also lowered China’s 2024 growth forecast from the previous 5% to 4.8%.
“The downward revision reflects our more cautious view on both investment and consumption growth, particularly in the third quarter,” the Wall Street bank said in a note.
“But as more signs of growth pressures emerge, policymakers are likely to ramp up easing efforts towards the end of the third quarter, leading to a modest recovery in growth momentum in the fourth quarter.”
Reporting by Roshan Abraham in Bengaluru; Edited by Sohini Goswami
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