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Wednesday, September 12, 2012

4 Likely Scenarios For The Chinese Economy In 2013

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Wednesday, September 12, 2012
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CHART OF THE DAY: 4 Likely Scenarios For The Chinese Economy In 2013
Weak Chinese economic data in August prompted Morgan Stanley analyst Helen Qiao and her team to downgrade the country's growth forecast.

They now expect 2012 GDP growth of 7.5 percent, down from 8 percent; and 2013 GDP growth of 7.9 percent, down from 8.6 percent.

China cut interest rates twice and announced a massive infrastructure stimulus to counter the slowdown. But officials are also expected to refrain from major policy changes for another quarter.

Through various permutations and combinations of policy changes, Qiao drew up four likely economic scenarios for China. But their base case is for the country to experience a "bumpy ride".

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