China’s 5% Growth Target Faces Rising Doubt as UBS Cuts Outlook
- JPMorgan and Nomura also predict GDP will expand less than 5%
- Property slump has dragged down consumption, household wealth
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China’s annual growth target looks increasingly out of reach to economists, with UBS Group AG adding to a string of recent forecast cuts as consumer spending slows and President Xi Jinping’s government avoids major stimulus.
With economic momentum held back by a real estate downturn and tight fiscal policy, the Swiss bank now expects China’s gross domestic product to expand 4.6% this year — compared with an earlier forecast of 4.9%. For 2025, UBS sees growth at 4%, down from 4.6% previously.