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China: Slowdown to continues, but no “hard landing” - Wells Fargo

Discussion in 'Fundamental Analysis' started by FXStreet_Team, Jan 19, 2016.

  1. FXStreet_Team

    FXStreet_Team Well-Known Member Trader

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    FXStreet (Córdoba) - According to analysts from Wells Fargo, the slowdown in Chinese GDP growth will continue but they don’t believe a hard landing is in the cards anytime soon.

    Key Quotes:


    “Economic growth in China has clearly slowed over the past few years, and data released this morning indicated the slowdown continued in Q4 2015. Full year growth for 2015 ended up roughly half a percentage point below the rate registered in 2014, with most of the deceleration concentrated in the country’s industrial and construction sectors. Meanwhile, output in the services sector actually accelerated last year, consistent with Chinese authorities’ explicit goals.”

    “Chinese economic growth slowed slightly more than expected at the denouement of last year, which may tempt some observers to fear the worst for the world’s second largest economy. However, while we expect the downward trend in growth to remain in place, we remain of the view that the adjustment will be gradual and orderly.”

    “Policymakers have a great deal of flexibility that should allow them to shore up economic growth should downward pressure intensify. As a result, we do not believe a deep recession is in the cards for China in the near future.”
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