China economy dips as trade war, debt overhang impact

HONG KONG - A batch of July economic indicators announced today, together with previously-released trade and credit data, suggest that the growth in China further decelerated due to escalation of US-China trade war and China domestic structural obstacles such, as debt overhang and financial risks.

Looking ahead, BBVA Bank says, the growth outlook in 2H 2019 depends on the Chinese authorities' policy stance.

"The risk of growth deceleration in 2H 2019 remains high," BBVA says.

"Although US President Trump postponed the tariff hike of some Chinese exports to December, which we believe accounts for around 60% of the remaining US$300 billion shipment from China, trade war uncertainties are likely to persist for a long period of time.

"Altogether, we maintain our 2019 GDP growth forecasting at 6% (against the Chinese authorities' target of 6-6.5%).
 

www.bbva.com  (ATI).