China’s GDP growth has not yet bottomed: ANZ Bank
HONG KONG -- China's GDP grew a weaker-than-expected 4.9% y/y in Q3, a figure which is not consistent with the economy's sequential growth and the dip in the jobless rate during the quarter, according to ANZ Bank.
"Based on the Q3 GDP data, we now expect China's growth to further slow to 3.6% y/y in Q4," ANZ says in a briefing note. "This will lead to full-year GDP at 8.0% in 2021, versus our prior forecast of 8.3%."
ANZ says that despite the weak Q3 GDP print, it expects President Xi Jinping to continue with his aggressive plan to transform the economy, and for the PBoC to keep interest rates on hold, with a focus on taming systemic financial risks.