19 Jan 2015
Chinese Q4 GDP might remain unchanged at 7.3% y/y – Danske
FXStreet (Barcelona) - The Danske Bank Team anticipates tomorrow’s Chinese Q4 GDP release to show that the growth remain unchanged at 7.3% y/y, further adding that the government might cut its 2015 GDP target to 7.0%.
Key Quotes
“Early tomorrow morning Chinese Q4 GDP data are due for release. We expect growth to stay unchanged at 7.3% y/y in Q4 compared with Q3. Quarter-on-quarter we expect GDP growth to ease a bit to 1.7% q/q from 1.9% q/q in line with the moderate decline in China’s manufacturing PMIs in Q4.”
“For 2014 as a whole GDP growth is expected to be 7.4%, only marginally below the Chinese government’s target of 7.5% GDP growth in 2014.”
“The government is expected to cut its target for GDP growth in 2015 to 7.0%. Hence, at the moment there is no severe pressure for more fiscal and monetary stimulus policy but we still expect the People’s Bank of China to cut the reserve requirement twice by 50bp in H1 15.”
Key Quotes
“Early tomorrow morning Chinese Q4 GDP data are due for release. We expect growth to stay unchanged at 7.3% y/y in Q4 compared with Q3. Quarter-on-quarter we expect GDP growth to ease a bit to 1.7% q/q from 1.9% q/q in line with the moderate decline in China’s manufacturing PMIs in Q4.”
“For 2014 as a whole GDP growth is expected to be 7.4%, only marginally below the Chinese government’s target of 7.5% GDP growth in 2014.”
“The government is expected to cut its target for GDP growth in 2015 to 7.0%. Hence, at the moment there is no severe pressure for more fiscal and monetary stimulus policy but we still expect the People’s Bank of China to cut the reserve requirement twice by 50bp in H1 15.”