Barclays, a British multinational universal bank, cut its forecast for China’s economic growth in 2023 to 3.8%, citing its expectations of a decrease in global demand for Chinese products.
The firm expected China’s exports to decline by 2-5% in 2023, compared to a forecast of 1% growth previously.
Barclays’ analysts stated that China’s share of global exports had been on a decline this year as foreign companies switched their orders to other Asian countries, including Vietnam, Malaysia, Bangladesh and India.
The cut included expectations for a sharp decline by 8-10% in real estate investment.
The firm also said that China’s strict Covid-19 control had limited consumer sentiment overall.
This year’s economic growth would be 2.6%, according to Barclays’ estimate.
