Growth of China’s economy will further slow to around 6.3% this year, dragged down by cooling exports and related manufacturing investment, according to a research report by the Bank of Communication (BoCom). Researchers estimated China’s growth in 2018 at 6.6%, down from 6.9% in 2017.
Infrastructure investment is expected to rebound in 2019 backed by government support, but it will hardly offset slowdowns in the property market and manufacturing sector, the report said.
BoCom researchers found that the Chinese economy will face greater downward pressure in the first half but will pick up in the second half as governments’ pro-growth policies take effect.
Possible easing of trade tensions with the U.S., supportive policies and positive effects of previous policies to cut overcapacity and financial leverage are expected to benefit the economy in 2019, the bank said.