INVESTMENT banks are cutting their growth forecasts for China, believing Beijing risks undershooting its official target by five per cent as confidence wanes in the world's second-largest economy, reports London's Financial Times.
Bank of America lowered its forecast from five per cent to 4.8per cent and Canadian investment bank TD Securities cut from 5.1 per cent to 4.7 per cent. The moves followed a UBS cut last week and a series of similar reductions over the summer.
Economists at Citi this week warned that Beijing's official growth target - which is the lowest in decades at 'around five per cent' - 'could be at risk,' adding to mounting concerns over the trajectory of China's economy as policymakers grapple with a prolonged property sector slowdown and weak consumer and investor confidence.
The median forecast for full-year GDP growth across dozens of economists polled by Bloomberg has slipped to 4.8 per cent, compared with 4.9 per cent in mid-August. Last year, China's GDP grew 5.2per cent, in line with forecasts.
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Bank of America lowered its forecast from five per cent to 4.8per cent and Canadian investment bank TD Securities cut from 5.1 per cent to 4.7 per cent. The moves followed a UBS cut last week and a series of similar reductions over the summer.
Economists at Citi this week warned that Beijing's official growth target - which is the lowest in decades at 'around five per cent' - 'could be at risk,' adding to mounting concerns over the trajectory of China's economy as policymakers grapple with a prolonged property sector slowdown and weak consumer and investor confidence.
The median forecast for full-year GDP growth across dozens of economists polled by Bloomberg has slipped to 4.8 per cent, compared with 4.9 per cent in mid-August. Last year, China's GDP grew 5.2per cent, in line with forecasts.
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