JPMorgan cuts China growth forecast for fifth time since August

Economy58 minutes ago (Nov 05, 2021 05:30AM ET)

(C) Reuters. FILE PHOTO: The JP Morgan sign is pictured at its Beijing office, in this picture taken December 13, 2010. REUTERS/Jason Lee

LONDON (Reuters) – JPMorgan (NYSE:JPM) cuts its fourth quarter growth forecast for China to 4.0% quarter-on-quarter from 5.0% on Friday, citing the impact of power shortages and the recurrence of COVID-19 clusters hitting consumer spending and services.

“Looking back, we have downgraded China’s growth forecasts five times since August,” JPMorgan’s Haibin Zhu said in a note, adding the bank now expected full-year growth of 7.8% and 4.7% in 2022.

“In particular, to smooth out COVID-related volatility, we note that the pace of average annual GDP growth (compared to two years ago) has decelerated notably.”

JPMorgan cuts China growth forecast for fifth time since August

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