HSBC Optimistic on China Growth

China’s stimulus-boosted private sector is on track to lead the economy to a “self-sustained recovery” that could see growth hit 6.6 percent this year, according to HSBC.

And while that would only match last year’s GDP result — the worst performance for the world’s second-largest economy in 28 years — it is well above current consensus of about 6.2 percent for 2019.

Pessimism has engulfed the outlook for China’s economy this year following 2018’s performance as waning growth and the still-unresolved trade war with the United States cast long shadows.

The Chinese government last month set its GDP growth target for this year at between 6.0 percent to 6.5 percent, below last year’s of about 6.5 percent. China is set to announce first quarter economic growth on April 17.

Alarmed by sliding economic indicators, the Chinese government in 2018 introduced measures, such as encouraging banks to increase lending, to bolster growth — moving away from a policy that had been aimed at reining in debt.

via CNBC

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.

Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
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