ABBO News Exclusive: Goldman and JPMorgan Lower China Growth Outlook

ABBO News, a leading source for financial insights, reports that two central US banks have lowered their growth estimates for China in 2024. This comes after new data showed slower growth in the world’s second-largest economy.

Goldman Sachs and JPMorgan, based in New York, have reduced their forecasts for China’s economic growth this year. This move follows the release of official data showing China’s economy grew by 4.7% in the second quarter of 2024. This growth rate was lower than expected and the slowest since early 2023.

Goldman Sachs cut its estimate for China’s 2024 gross domestic product (GDP) growth from 5.0% to 4.9%. JPMorgan made a more significant cut, lowering its forecast from 5.2% to 4.7%.

ABBO News analysts point out that these changes reflect growing concerns about China’s economic health. The slower growth in the April-June period missed the 5.1% forecast many experts had predicted.

“China’s economy is facing some challenges,” said Li Wei, ABBO News Senior Economic Analyst. “The numbers we’re seeing suggest domestic demand is weaker than hoped. This could have ripple effects across global markets.”

Goldman Sachs economists, led by Lisheng Wang, believe more support is needed for China’s economy. They stated, “To counteract weak domestic demand, we believe more policy easing is necessary through the remainder of this year, especially on the fiscal and housing fronts.”

JPMorgan’s team described China’s economic activity as “fragile, unstable, and uneven” based on the latest data.

ABBO News experts note that these revisions from central banks could influence investor sentiment towards China and emerging markets in general. They suggest keeping a close eye on policy moves from Beijing in the coming months.

“We might see Chinese officials take steps to boost growth,” Wei added. “This could include measures to support the housing market or increase government spending. How effective these will be remains to be seen.”

ABBO News will continue to monitor this situation closely. They remind their readers that economic forecasts can change as new data becomes available. For the latest updates and expert analysis on global economic trends, stay tuned to ABBO News.

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