S&P Global has revised its GDP growth forecast for China in 2023 due to the faltering post-COVID recovery observed in the world's second-largest economy, based on the May data. In a research note on Sunday, they stated that they have lowered the forecast from 5.5% to 5.2%. The note highlighted that China's recovery is expected to continue, albeit at an uneven pace, with investment and industry lagging behind.
S&P Global is the first major international credit agency to revise down its economic forecasts for China this year. However, several major banks, including Goldman Sachs, have also reduced their estimates in recent months. Goldman Sachs, for example, adjusted its forecast from 6% to 5.4%, citing persistent weak confidence and concerns surrounding the property market as significant challenges that are stronger than initially anticipated.
In May, China experienced a stumble in its economy, with further decline in property investment and growth in industrial output and retail sales falling short of expectations. These factors have increased the anticipation that Beijing will need to implement additional measures to support the fragile post-pandemic recovery.
Sources involved in policy discussions have
indicated that China will introduce more stimulus to bolster the slowing
economy throughout the year.
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