China: Economic growth expected to slow down - BNPP

After a period of stabilisation and slight recovery since Q2 2016, China’s economic growth is expected to slow down moderately in the coming quarters, suggests the research team at BNP Paribas.  

Key Quotes

“Exports should continue to rebound and infrastructure projects will continue to drive investment. However, downside risks are high due to the reduction in excess production capacity in the industry and given risks of a downturn in the property market and financial instability.”

“The authorities will maintain an expansionist fiscal policy while the central bank should continue to tighten monetary conditions cautiously, especially to foster a deleveraging of financial institutions.”