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JPMorgan cuts China's 2023 growth forecast


JPMorgan Chase has downgraded China's growth forecast for 2023 following slower than expected Q2 economic growth. The banking giant, led by economist Haibin Zhu, now predicts a 5% growth for China this year, a drop from the previous 5.5% forecast. China's economy grew 6.3% YoY in Q2, below the projected 7.3% growth rate due to weakened domestic and international demand. Zhu suggested the Chinese government may implement policy easing measures in response to the disappointing GDP report. Possibilities include a 10-basis-point policy rate cut in Q4 and a relaxation of housing policy requirements. Such steps aim to sustain economic recovery and control unemployment, while balancing the risk of increasing debt and structural distortions.

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