SHANGHAI, China, Oct. 21 (.) – Swiss bank UBS (SIX:) on Monday revised its forecast for China’s real GDP growth to 4.6 from its previous forecast after forecasting better-than-expected third quarter results. % to 4.8%. and the recent economic stimulus package announced by the Chinese government.
Wang Tao, the firm’s chief economist for China, said in a statement that these factors mean he expects the world’s second-largest economy to grow sequentially at an annual rate of 6.5% in the final quarter of this year. He pointed out that
“The increase in fiscal resources will carry over into early 2025, along with a recovery in credit growth,” the expert said, also pinning China’s GDP growth forecast for the coming year to 4% to 4.5%. A fix will come.
This outlook could improve depending on the final size of fiscal stimulus and the application of support to the real estate sector and other areas of the economy.
Last week, another banking giant, Goldman Sachs (NYSE:), also revised its GDP forecast for China upward, raising its 2024 forecast to 4.9% from 4.7%.
In recent weeks, the Chinese government has announced a series of stimulus measures in response to U.S. interest rate cuts, as well as weaker-than-expected economic data for August, with Chinese President Xi Jinping on track to meet China’s economic growth targets. We are calling on them to step up their efforts to achieve this goal. This year it’s about 5%.
Weak domestic and international demand, along with the risk of deflation, a lack of economic stimulus, an unyielding real estate crisis, and consumer and private sector distrust, are among the factors that analysts consider to explain the global situation. This is part of the reason for using it. The world’s second largest economy.
