Goldman Sachs, J.P. Morgan trims China 2024 growth forecast

Goldman Sachs on Monday lowered its forecast for China's 2024 gross domestic product to 4.9 per cent from 5.0 per cent after data showed that the country's economy had slowed in the second quarter.

The world's second-largest economy grew 4.7 per cent in April-June, official data showed, its slowest since the first quarter of 2023 and missing a 5.1 per cent analysts' forecast in a Reuters poll.

"To counteract weak domestic demand, we believe more policy easing is necessary through the remainder of this year, especially on the fiscal and housing fronts," said Goldman Sachs economists, led by Lisheng Wang.

J.P. Morgan said China's second quarter GDP report and June activity data showed that economic activity in the country remains "fragile, unstable and uneven."

The brokerage lowered its 2024 GDP forecast for the country to 4.7 per cent compared to an earlier estimate of 5.2 per cent.