China: Signs of stabilisation – ABN AMRO

According to Arjen van Dijkhuizen, senior economist at ABN AMRO, growth momentum in China’s industrial has cooled end-2018, driven by previous tightening policies and the US-China trade/tech conflict.

Key Quotes

“As the authorities have shifted course and eased monetary and fiscal policies, we are starting to see signs of stabilisation. As we expect more of these easing measures to filter through and we see a rising likelihood of a US-China deal, we expect the Chinese economy to stabilise further in the course of this year.”

“All in all, we expect the gradual slowdown in GDP growth to continue. That said, some data could prove quite volatile in Q1, given the shift in timing of the Lunar New Year and distortions from previous frontloading.”