S&P Global cut its forecast for China’s economic growth this year, underscoring the uneven nature of the country’s recovery from the pandemic which is spurring calls for further stimulus, reports Reuters. S&P now expects China to log GDP growth of 5.2% in 2023, down from an earlier estimate of 5.5%. It was the first time a global credit ratings agency has cut China’s forecast this year but follows lowered predictions by major investment banks including Goldman Sachs.
“China’s key downside growth risk is that its recovery loses more steam amid weak confidence among consumers and in the housing market,” S&P said in a statement on Sunday.
The world’s second-largest economy has slowed in recent months after coming back to life with the lifting of three years of restrictive zero-COVID policies. In May, property investment slumped further, industrial output and retail sales growth missed forecasts, and youth unemployment hit a record 20.8%.