Nomura slashes China 2021 growth forecast to 7.7% from 8.2% previously

Nomura cuts its forecast for China’s growth this year

The firm cites the impact of factories pausing operations amid power outages and the ongoing push on environmental policies as the key reason for the downgrade.

“Over recent weeks, a surging number of factories across China have been forced to cease operations due to higher coal prices hitting power supplies and government mandates to meet carbon emission reduction targets.”

Adding that this will put downwards pressure on growth, alongside curbs on the property sector which have resulted in the Evergrande situation seen currently.
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