For the second straight month, a slew of disappointing economic data from China spurred investment banks around the world to cut their 2023 growth outlook.
The wave of downgrades highlights the danger of the world’s second-biggest economy missing its official target of around 5% expansion for this year, without more concerted policy actions. The latest reductions by private-sector economists followed an announcement of interest-rate cuts by the central bank.
JPMorgan Chase & Co’s team lowered its full-year forecast for 2023 to a 4.8% gain for gross domestic product. As recently as early May, the bank had been predicting a 6.4% expansion, among the highest calls.
