China’s Growth Forecasts Take a Hit as Power Crunch Worsens
- Power cuts to lower GDP growth by 0.1-0.15ppt in 3Q, 4Q: CICC
- Nomura says September PMI to show contraction in factories
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Economists warned of lower economic growth in China as electricity shortages worsen in the country, forcing businesses to cut back on production.
China International Capital Corp. estimated the electricity shortages will lower the country’s growth rate by 0.1 to 0.15 percentage point in the third and fourth quarters. Nomura Holdings Ltd. cut its full-year forecast for gross domestic product, while Morgan Stanley warned of lower fourth-quarter output.