Posted by: youngragingbull | April 15, 2013

JPMorgan cuts China’s 2013 growth to 7.8%

J.P. Morgan cut China’s economic growth estimate for 2013 to less than 8% on Monday after the country’s expansion in first-quarter gross domestic product fell short of the brokerage’s and consensus estimates.

The mainland economy is now expected to grow 7.8% in 2013, down from their previous forecast of 8.2%, J.P. Morgan economists wrote in a note.

“The China economy will show moderate growth pace in 2013, although the economy will continue the long-term downward trend in its growth potential. In particular, as the structural adjustment in the economy goes on, overcapacity in a number of industrial sectors remains underwhelming, restraining the pace of cyclical recovery,” they said.

Official data released Monday showed China’s GDP grew 7.7% in the first quarter of 2013, compared with J.P. Morgan’s estimate for 8.1%.

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