More Chinese provinces cut 2019 growth forecasts

So far 23 Chinese provinces have lowered their economic growth targets for this year, up from 17 last year, reflecting the darkening mood over China’s medium-term economic outlook, Reuters reports.

Just five of China’s 31 provinces – Sichuan, Hebei, Guizhou, Gansu and Hainan – have maintained last year’s targets, compared with 12 in 2018. Hubei is the only province to raise its target, as it benefits from a sweep of investment in high-tech manufacturing.

“The new provincial targets reflect the challenges faced by China. Export-driven coastal areas are facing the risk of lower growth amid uncertainty from the US-China trade war,” China economist Tommy Xie at OCBC bank told Reuters.

China grew at its lowest annual rate in almost three decades last year, slowing to 6.6%. The official 2019 target is expected to fall between 6 and 6.5% when announced during the national meetings in March.