JPMorgan (NYSE:JPM) cut its fourth-quarter growth forecast for China to 4.0% quarter-on-quarter from 5.0%, citing the impact of power shortages and the recurrence of COVID-19 clusters hitting consumer spending and services.
The latest downgrade is the fifth time that the biggest U.S. bank by assets has lowered its growth forecast for China since August this year.
"Looking back, we have downgraded China's growth forecasts five times since August," JPMorgan said in a note to clients, adding that the bank now expected full-year growth of 7.8% this year and 4.7% in 2022.
"To smooth out COVID-related volatility, we note that the pace of average annual GDP growth (compared to two years ago) has decelerated notably" within China, wrote JPMorgan.
In October, the Chinese government reported that its economy grew 4.9% in the July to September quarter from a year earlier, which was the slowest pace in a year and worse than analysts had expected.
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