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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