China: Economic growth will decelerate in 2018-2019 – BNP Paribas

China’s economic growth will decelerate in 2018-2019 as the export outlook is significantly darkened by US protectionist measures, according to analysts at BNP Paribas.

Key Quotes

“Private domestic demand should be affected by the worsening performance of the export manufacturing sector and the continued moderation in the property market.”

“In order to contain the slowdown, the central bank has started to ease liquidity and credit conditions. At the same time, the reduction in financial instability risks should remain a top policy priority. Fiscal policy will also be expansionary and infrastructure spending is projected to rise.”