Wall Street reduces its projections for China's economic growth

Wall Street reduces its projections for China's economic growth.

From earlier predictions of 5.7% and 5.5%, respectively, economists at Morgan Stanley and JPMorgan have reduced their expectations for China's GDP growth to 5% this year.

China, the second-largest economy in the world, saw slower-than-anticipated growth in the second quarter of this year, which resulted in reduced yearly predictions for GDP growth.

Please keep in mind that the Chinese real estate market has not yet stabilized: real estate investment in the country fell by 7.9% in the first six months of 2023, following a 7.2% drop in the same period the previous year.

China's GDP increased by 6.3% year over year in the second quarter of 2023. Reuters surveyed economists, who predicted 7.3% GDP growth.

Meanwhile, analysts are particularly focused on the shift in China's GDP from the preceding quarter. The Chinese economy increased by 0.8% in the last three months, compared to 2.2% in the previous quarter.