Gross Domestic Product (GDP) growth forecasts for China in 2023 have been reduced by leading banks, including JPMorgan Chase & Co., UBS Group AG, and Standard Chartered Plc. Weakening retail sales and investment in fixed assets in May have contributed to the downward revisions. Economists highlight sluggish domestic demand, particularly in the housing sector and private investments.
In response to the growth slowdown, the People’s Bank of China has lowered its key interest rate. However, experts warn that additional measures, such as reducing reserve requirements for banks and supporting infrastructure investments, may be needed to stimulate the economy.
It is expected that the State Council of China will discuss a package of measures to stimulate economic sectors, including real estate. The July meeting of the Politburo will hold significant importance as additional support measures for economic growth may be announced.
The weak data and challenges faced by China underscore the necessity for political support and economic stimulus to achieve sustainable growth.
