UBS reduces 2009 GDP forecast to 8%

UBS reduced its forecast for China’s GDP growth in 2009 to 8.0% from 8.8%, Reuters reported. The bank pointed to weak global growth and forecasts of a significant US recession as reasons for the reduction, the second in less than three months for the 2009 figure. UBS China Economist Tao Wang also lowered her 2008 GDP growth projection to 9.6% from 10%. "We expect growth of exports and real estate investments to slow significantly in the coming months, but think that the government’s counter-cyclical fiscal and monetary policy measures could help stimulate domestic demand and partially offset the negative external shock," said Wang.