20 Jan 2016
China: Growth slowdown will likely continue in Q1 2016 – Nomura
FXStreet (Delhi) – Research Team at Nomura, notes that the Chinese real GDP growth dipped only slightly to 6.8% y-o-y in Q4 from 6.9% in Q3, possibly with the non-financial services sector filling the gap left by a weaker financial sector.
Key Quotes
“However, weaker December core activity growth across the board suggests still-soft growth momentum and large downward pressure.
We expect growth to continue to slow and maintain our forecast of real GDP growth slowing to 5.8% this year from 6.9% in 2015.
We expect a moderate fiscal stimulus (with the budget deficit rising to 3% of GDP) and an accommodative monetary policy stance (with four 50bp bank reserve requirement ratio cuts and two 25bp benchmark interest rate cuts) in 2016.”
Key Quotes
“However, weaker December core activity growth across the board suggests still-soft growth momentum and large downward pressure.
We expect growth to continue to slow and maintain our forecast of real GDP growth slowing to 5.8% this year from 6.9% in 2015.
We expect a moderate fiscal stimulus (with the budget deficit rising to 3% of GDP) and an accommodative monetary policy stance (with four 50bp bank reserve requirement ratio cuts and two 25bp benchmark interest rate cuts) in 2016.”