S&P Global cuts China 2023 growth forecast to 5.2% from 5.5%

S&P Global said it has cut its 2023 GDP growth forecast for China after May data showed a post-COVID recovery was faltering in the world’s second-largest economy.

“We have reduced our 2023 GDP growth forecast to 5.2%, from 5.5%,” it said in a research note on Sunday.

“China’s recovery should continue but at an uneven pace, with investment and industry lagging.”

S&P is the first major international credit agency to cut its forecasts for China’s economy this year, although several major banks including Goldman Sachs have lowered their estimates this month.

Goldman Sachs reduced its forecast from 6% to 5.4%, citing persistently weak confidence and the cloud over the property market as stronger-than-expected headwinds.

China’s economy stumbled in May with property investment slumping further, industrial output and retail sales growth missing forecasts, adding to expectations that Beijing will need to do more to shore up a shaky post-pandemic recovery.

China will roll out more stimulus to support a slowing economy this year, sources involved in policy discussions have said.