The world’s second largest economy is expected to cool further this year following a sustained downward trend in domestic demand and trade relations with the US, according to a Reuters poll, triggering the need for more stimulus measures from Beijing.
China’s economic growth is expected to fall to 6.3% this year from an anticipated 6.6% in 2018, according to the average of 85 economists polled by Reuters. This would be China’s slowest year-on-year growth in almost three decades.
A strong start in 2018 soon began to slide as the overhang of Beijing’s credit crackdown and the onset of the trade war with Washington darkened market prospects. Growth for the fourth quarter is expected to be 6.4% but some analysts believe that this could be even lower based on recent weaker-than-expected industrial data.
“We expect the economy to soften further this year. Domestic headwinds are likely to stay strong,” analysts at Capital Economics said in a note.