Goldman Sachs Revises Chinese GDP Lower, as Chinese Officials Expect More Coronavirus Cases This Month
The coronavirus continues to spread further in China and Goldman Sachs revised the GDP lower a while ago
Skerdian Meta•Tuesday, February 11, 2020•1 min read
Coronavirus cases keep increasing in China, heading towards 50k, while deaths have surpassed 1,000. New cases keep coming and the situation is getting worse, but the sentiment is not as bad as in January. Chinese officials expect a further increase this month, but then the virus will flatten out.
Goldman Sachs expects the Chinese economy to slow down to 5.2%, but considering that the effects of the virus on the economy are greater, I think that the GDP will slow down further.
Remarks From Chinese Government Medical Advisor, Zhong Nanshan
- Virus outbreak may peak later this month and then plateau
- Based on current models and trend
- The new coronavirus has been very contagious up to this point, compared to SARS
- It is unclear if the virus is being spread by ‘super-spreaders’
- China needs stronger, more powerful disease control system
- Situation is improving in some provinces, with new diagnoses declining
Goldman Sachs Report
- Goldman Sachs downgrades 2020 China growth forecast to 5.2% from 5.8% previously
- The downgrade reflects a sharp deterioration in Q1 activity
- But points to high degree of uncertainty surrounding this growth revision
- Will review its forecast as developments evolve
- Need to gauge the size of the economic drag from the virus outbreak
- Check out our free forex signals
- Follow the top economic events on FX Leaders economic calendar
- Trade better, discover more Forex Trading Strategies
- Open a FREE Trading Account
ABOUT THE AUTHOR
See More
Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst.
Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
Related Articles
Comments
Subscribe
Login
Please login to comment
0 Comments
Oldest
Sidebar rates
Related Posts
Save
Join 350 000+ traders receiving Free Trading Signals
Alerts
Rates
Calendar
Signals