• China enters the Year of the Rat having recorded its weakest rate of growth in almost three decades in 2019. Some of this reflected the gradual slowing trend as China’s economy matures, however it has also faced some external pressures as well. While the recently signed “Phase One” trade deal with the United States provides a more positive outlook than was the case in mid-2019, China’s economy will continue to face some significant challenges – including the coronavirus, the still uncertain global trade environment, high consumer price inflation, rising corporate defaults and growing demographic constraints.
• We expect the slowing trend in economic growth to continue in 2020. However, we are currently reviewing our growth forecast due to the economic disruption caused by the coronavirus.

For further details, please see the China Economic Update – February 2020