BofA reduces projection for China’s growth for the next 3 years

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Investment bank believes that “there will be little contagion” of the Chinese giant Evergrande’s problems in the real estate sector as a whole

O BoFA Securities on Tuesday reduced its projection for the economic growth of the China for the next three years due to the combination of the outbreak of the Delta variant of the coronavirus and the tightening of controls over the real estate and infrastructure sectors.

The US investment bank said its new forecast for China’s Gross Domestic Product growth this year has been reduced to 8.0% from 8.3%. For 2022, the estimate was 5.3% from 6.2% and in 2023 it was 5.8% from 6.0%.

The bank also said its basic scenario on the problems at the Chinese giant Evergrande is that “there will be little contagion” in the real estate sector as a whole and in the financial markets if the government bails out the company by facilitating an orderly debt restructuring.

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palheta smll BofA reduces projection for China's growth for the next 3 years

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