South Africa Eyes ECB Repo Lines as Inflation Eases and Rate Cuts Loom 
TSMC Eyes 3nm Chip Production in Japan with $17 Billion Kumamoto Investment 
Nvidia CEO Jensen Huang Says AI Investment Boom Is Just Beginning as NVDA Shares Surge 
CK Hutchison Launches Arbitration After Panama Court Revokes Canal Port Licences 
Gold Prices Slide Below $5,000 as Strong Dollar and Central Bank Outlook Weigh on Metals 
Trump Lifts 25% Tariff on Indian Goods in Strategic U.S.–India Trade and Energy Deal 
Missouri Judge Dismisses Lawsuit Challenging Starbucks’ Diversity and Inclusion Policies 
Trump Signs Executive Order Threatening 25% Tariffs on Countries Trading With Iran 
SoftBank Shares Slide After Arm Earnings Miss Fuels Tech Stock Sell-Off 
Thailand Inflation Remains Negative for 10th Straight Month in January 
Toyota’s Surprise CEO Change Signals Strategic Shift Amid Global Auto Turmoil 
Singapore Budget 2026 Set for Fiscal Prudence as Growth Remains Resilient 
Washington Post Publisher Will Lewis Steps Down After Layoffs 
China Extends Gold Buying Streak as Reserves Surge Despite Volatile Prices 
U.S. Stock Futures Slide as Tech Rout Deepens on Amazon Capex Shock 
Global Markets Slide as AI, Crypto, and Precious Metals Face Heightened Volatility 
Tencent Shares Slide After WeChat Restricts YuanBao AI Promotional Links 
Major global banks, including Bank of America and Goldman Sachs, have lowered their growth forecasts for China, now projecting less than 5% for 2024. BofA anticipates a 4.8% growth rate, citing weak domestic demand and insufficient policy support as key challenges for the Chinese economy.
BofA Lowers China’s Growth Forecast to 4.8%, Citing Insufficient Policy Support and Weak Demand
Most global banks anticipate that China's economy will grow by less than 5% this year. Bank of America Corp. is the most recent to reduce its forecast, joining Goldman Sachs Group Inc. and JPMorgan Chase & Co. on this front.
According to a report from BofA received on September 4 (via Yahoo Finance), the world's second-largest economy is expected to expand by 4.8% this year, a decrease from the previous forecast of 5%. The bank stated that growth may further decelerate to 4.5% over the next two years, as opposed to an earlier estimate of 4.7%.
The downgrade indicates a growing consensus among the world's largest institutions that China may need help achieving its current growth target of approximately 5% this year. After the economy expanded at its weakest pace in five quarters, there are cries for Beijing to introduce additional stimulus. However, policies have remained incremental, and the central bank has stated that it will refrain from implementing "dramatic"measures.
“We find both the fiscal and monetary policy stance less accommodative than desired and insufficient to revive domestic demand growth,” BofA economists, including Helen Qiao, wrote in the note dated September 2.
BofA Warns of U.S. Election Impact on China’s Growth, Cites Weak Credit Demand and Exports
The bank acknowledged that its most recent forecast is at the lower end of the official target. It emphasized that the US presidential election is a significant uncertainty for China's development, as exports are currently the economy's “almost only bright spot.”
According to official data, credit demand remained weak despite lower lending rates, while a broad measure of government expenditure decreased in the first seven months of the year.
BofA stated that sequential growth may have reached its lowest point in the second quarter as existing measures progressively took effect. However, due to insufficient policy support, China's expansion is expected to stabilize at below-potential levels for the next two years.
