Real estate company Citi downgrades growth forecast for China because of Evergrande

Real estate company Citi downgrades growth forecast for China because of Evergrande

Real estate company Citi downgrades growth forecast for China because of Evergrande
The Citi experts also downgraded their forecasts for several Chinese stock indices.  Source: dapd

The analysts of the US bank Citi have lowered their forecasts for economic growth in China because of the debt problems of the real estate company Evergrande. The experts assume that the gross domestic product in the People’s Republic will only grow by 4.9 percent instead of 5.5 percent next year, as they explained in a research report on Tuesday.

The analysts also believe that an interest rate cut of 25 basis points is possible next year. “The growth pressure could trigger a cautious monetary policy easing including a rate cut.” The Citi experts also downgraded their forecasts for several Chinese stock indices.