The coronavirus outbreak is hurting Chinese growth this year and jeopardizing an important growth target. Amy Yuan Zhuang, Chief Asia Analyst at Nordea, expects activity resumption and government stimuli to stage a strong rebound later this year, but some policy actions are likely to exacerbate the systemic risks in the medium term. USD/CNY trades at 6.9386. Key quotes “We estimate that the economy will grow by barely 3% y/y in Q1, versus our previous forecast of 6%. Due to an expected rebound in Q2 and Q3, we expect full-year GDP growth at 5%, an all-time low for China. The risk is on the downside, in our view, as the rapid spread of the virus among China’s trading partners could have a spill-back effect on Chinese growth.” “To maintain economic and social stability, Beijing has once again turned to infrastructure investment to support growth. Half of China’s provinces have plans to spend a total of CNY 6.6tn (about 6% of GDP) this year on transportation, energy, high-tech sectors and healthcare. Other provinces will likely follow suit.” “The CNY has appreciated nearly 2% in less than two weeks in anticipation of a rate cut from the Fed. Now it has happened and the ball is back in the PBoC’s court. We expect the PBoC to cut the benchmark lending rates to support growth while curbing further upside to the CNY.” FX Street FX Street FXStreet is the leading independent portal dedicated to the Foreign Exchange (Forex) market. It was launched in 2000 and the portal has always been proud of their unyielding commitment to provide objective and unbiased information, to enable their users to take better and more confident decisions. View All Post By FX Street FXStreet News share Read Next Canada: Further cuts seem likely – Westpac FX Street 3 years The coronavirus outbreak is hurting Chinese growth this year and jeopardizing an important growth target. Amy Yuan Zhuang, Chief Asia Analyst at Nordea, expects activity resumption and government stimuli to stage a strong rebound later this year, but some policy actions are likely to exacerbate the systemic risks in the medium term. USD/CNY trades at 6.9386. Key quotes “We estimate that the economy will grow by barely 3% y/y in Q1, versus our previous forecast of 6%. Due to an expected rebound in Q2 and Q3, we expect full-year GDP growth at 5%, an all-time low for China. The risk… Regulated Forex Brokers All Brokers Sponsored Brokers Broker Benefits Min Deposit Score Visit Broker 1 $100T&Cs Apply 0% Commission and No stamp DutyRegulated by US,UK & International StockCopy Successfull Traders 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 2 T&Cs Apply 9.8 Visit Site FreeBets Reviews$100Your capital is at risk. 3 Recommended Broker $100T&Cs Apply No deposit or withdrawal feesTrade major forex pairs such as EUR/USD with leverage up to 30:1 and tight spreads of 0.9 pips Low $100 minimum deposit to open a trading account 9 Visit Site FreeBets ReviewsYour capital is at risk. 4 T&Cs Apply Visit Site FreeBets ReviewsYour capital is at risk. 5 Recommended Broker $0T&Cs Apply Trade gold, silver, and platinum directly against major currenciesUp to 1:500 leverage for forex trading24/5 customer service by phone and email 9 Visit Site FreeBets ReviewsYour capital is at risk.