In light of growing China coronavirus economic risks, Goldman Sachs analysts made a downward revision to the Chinese growth forecast for 2020
Key Quotes:
China’s 2020 GDP forecast lowered to 5.2% vs. 5.8% previous.
The downgrade reflects a sharp deterioration in Q1 activity.
But points to high degree of uncertainty surrounding this growth revision.
Will review its forecast as developments evolve.
Need to gauge the size of the economic drag from the virus outbreak.
Remain overweight on EM currencies, also overweight in JPY as a hedge for risk-off sentiment during this time.
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