Nomura cuts China growth forecast

Nomura has cut its annual growth forecast for China to 5.5%. In a note published on Wednesday, Nomura cut its annual growth forecast for China to 5.5% from 5.9%. “China’s post-Covid recovery is rapidly losing momentum,” Nomura’s Ting Lu wrote, noting that the latest activity data from May and high-frequency data showed that momentum was losing steam, “partly due to weak confidence among consumers and business investors.” “As disappointment sets in, we see an increasing risk of slower activity growth, rising unemployment, persistent disinflation, falling market interest rates and a weaker currency,” Lu wrote. Nomura added that it also lowered its full-year 2024 gross domestic product forecast for China to 4.2% from 4.4%. It expects GDP to grow 7.8% in the second quarter, 4.9% in the third quarter and 5.0% in the final quarter of the year.