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UBS to Bank of America Slash China GDP Forecasts on Covid Damage

  • Tough Covid controls dent growth prospect, economists say
  • Policy support to focus on infrastructure and property: UBS
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UBS Group AG, Barclays Plc, Standard Chartered Plc and Bank of America Corp have cut their forecasts for China’s full-year economic growth as the country sticks to tough anti-Covid curbs and lockdowns to control a worsening virus outbreak.

UBS downgraded its gross domestic product growth forecast to 4.2% from 5% “in light of the intensified downward pressure on the economy,” economists led by Tao Wang said in a report to clients Monday. The same day, Barclays economists cut their assessment by 20 basis points to 4.3% “in expectation that Covid disruptions will be prolonged.”