China’s GDP forecast revised down sharply to 2.3% QoQ in Q3 – Goldman Sachs

Analysts at Goldman Sachs made a sharp downward revision to China’s Q3 GDP growth forecast, although predict a bounce in the final quarter of this year.

Key quotes

“We revise down our Q3 real GDP forecast by 3.5pp to 2.3% QoQ vs. 5.8% previously."

“For the full year, GDP forecast lowered to 8.3% vs. 8.6% previous.”

“See a bounce in Q4 though, with 8.5% QoQ vs. previous projection was 5.8%, citing an expected removal of restrictions and stimulatory fiscal and monetary policy to remain in place.”

“See faster issuing of local govt bonds to fund spending and further RRR cut.”

Related reads

China’s CPI beats estimates with 1.0% YoY in July, AUD/USD tests 0.7350

PBOC sets USDCNY reference rate at 6.4840 vs. 6.4845 previous