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China Recovery Below Expectations According to JP Morgan

The Chinese economy this year will experience a tempered growth weaker than expected, predicted JP Morgan Chief China Economist Zhu Haibin on Thursday.

Speaking during a media briefing, he said that JP Morgan has revised down its GDP forecast for China in 2013 to 7.6 percent from the previous forecast of 8.2 percent amid weak economic data.

“The April data suggests that domestic demand remains on the weak side, and by extension has also caused a softening in the services sector,” said Zhu.

Despite strong growth in real estate and railway investment, investment in the manufacturing sector continued to slow and the recovery in industrial production was weaker than expected, according to the senior economist.

Zhu suggested that the Chinese government continue reducing overcapacity, open more sectors for private investment, encourage research and innovation, and alleviate the burden of companies’ taxation to promote recovery.

via Xinhua [1]

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Alfonso Esparza

Alfonso Esparza [6]

Senior Currency Analyst at Market Pulse [7]
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza