Morgan Stanley cuts China’s 2023 economic growth forecast to 4.7%

Morgan Stanley currently expects China’s GDP growth of 4.7 percent this year, down from its previous forecast of five percent growth. It also lowered its GDP growth forecast for 2024 to 4.2 percent from 4.5 percent.

Morgan Stanley’s economists said in a memo that the downgrading of growth projections was due to the forecast of a sharp slowdown in capital spending, followed by a spate of disappointing data over the country’s embattled property sector.

It is worth mentioning that China’s real estate sector has been experiencing severe liquidity shortages since late 2021 when Evergrande Group collapsed and caused a series of debt deficits.