China seen heading for sub-6% economic growth as tariffs soar

Oxford Economics, Bank of America Merrill Lynch, and Bloomberg Economics have all cut their forecasts for gross domestic product growth in 2020 to below 6% as a result of increasing risks from the tariff war with the US

BEIJING: Economists are downgrading their forecasts for economic growth in China again, to below a level seen as necessary for the Communist Party to meet its own goals in time for its centenary in 2021.

Oxford Economics, Bank of America Merrill Lynch, and Bloomberg Economics have all cut their forecasts for gross domestic product growth in 2020 to below 6% as a result of increasing risks from the tariff war with the US. In addition, Bank of America’s Helen Qiao and others are warning that the government’s current approach to stimulus is proving insufficient.