According to Bloomberg, the industry analysts and economists believe that China isn’t likely to rebound from its slowdown any time soon even amid signs policy makers are successfully cushioning some of its slowdown.
Katrina Ell, an economist with Moody’s Analytics in Sydney, noted: “If China continues with its measured and piecemeal approach to stimulus, global growth will continue to lose momentum. The big unknown is how far China will go. Beijing’s preference has been to avoid repeating previous massive stimulus support, but they may be forced into more aggressive action if momentum continues to wane.”
Capital Economics estimatea slower China expansion will shave about 0.2 percentage point off global growth this year, compared to 2018.
Citigroup Inc. warned in a Jan. 14 note that the China slowdown may “blow the global economy off course.”
Chang Shu and David Qu at Bloomberg Economics said: “While the data appear to tell a “glass half full, half empty” story, market sentiment might be helped by the improvement in the indicators’ second derivatives — in other words, the slower pace of deterioration — and expectations of more policy support.”
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