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Analysts at National Bank of Australia noted that China enters the Year of the Rat having recorded its weakest rate of growth in almost three decades in 2019.

Key quotes

  • Some of this reflected the gradual slowing trend as China’s economy matures, however it has also faced some external pressures as well.
  • While the recently signed “Phase One” trade deal with the United States provides a more positive outlook than was the case in mid-2019, China’s economy will continue to face some significant challenges – including the coronavirus, the still uncertain global trade environment, high consumer price inflation, rising corporate defaults and growing demographic constraints.
  • We expect the slowing trend in economic growth to continue in 2020. However, we are currently reviewing our growth forecast due to the economic disruption caused by the coronavirus.