Posted by: youngragingbull | May 15, 2013

B.of.A Merrill Lynch cuts China growth for 2013, 2014

Bank of America Merrill Lynch has cut growth forecasts for China on Tuesday, saying that slowing external demand is in part behind its dimmer view of economic activity for this year and the next.

Merrill Lynch now expects gross domestic product in 2013 to expand by 7.6% from 8%.

Merrill Lynch held off on cutting its forecasts after weak data in March and in the first quarter, but after “recalibrating base effects and taking into account sluggish external demand, we have changed our minds,” wrote economists in a report Tuesday.

They said they see “continued headwinds for China-related asset prices on flattish (or slightly falling) year-over-year growth.”

Merrill Lynch also reduced its 2014 GDP projection to 7.6% from 7.7%, and noted its forecasts are below consensus of around 7.8% to 8% for this year and next.

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