The IMF downgraded Chinese growth estimates to 8.25% on fears over the Eurozone crisis. They are warning that growth could be cut in half in a worst case scenario (via Reuters):
“China’s annual economic growth could be cut nearly in half this year if Europe’s debt crisis tips the world economy into a recession, putting pressure on Beijing to unveil “significant” fiscal stimulus, the International Monetary Fund said.
The Fund outlined its central scenario for China’s 2012 growth outlook in its global outlook in January, cutting its forecast for 2012 growth from 9 percent to 8.2 percent.
The China Economic Outlook published on Monday showed that under the IMF’s “downside” forecast for the global economy, China’s growth rate may be cut by around 4 percentage points from the fund’s current forecast of 8.2 percent in 2012.”
China Scope Financial says the IMF is too pessimistic and growth will be a bit stronger in 2012 at 8.6% (via China Scope Financial):
- In a report released on February 6, the International Monetary Fund (IMF) lowered China’s economic growth expectations in 2012 to 8.25%. Before this, IMF expected a 9.2% growth.
- ChinaScope Financial expects China’s GDP growth in 2012 to be 8.6%.
- Related Data: Gross Domestic Product
ChinaScope Financial forecasts growth in 2012 at 8.6 %, 0.35 percentage point higher than the IMF forecast.
Source: China Scope Financial