China: Economic growth to decelerate in 2018-2019 – BNP Paribas
According to analysts at BNP Paribas, China’s economic growth will decelerate in 2018-2019 due to both structural and cyclical reasons.
“The export outlook is significantly darkened by US tariff hikes. Private domestic demand should be affected by the worsening performance of the export manufacturing sector and the continued moderation in the property market.”
“In order to contain the slowdown, the central bank is easing liquidity and credit conditions. At the same time, the reduction in financial instability risks via regulatory tightening should remain a top policy priority. Fiscal policy is also turning expansionary (tax cuts, increased infrastructure spending).”