Apr 15, 2025, 12:25 PM
Apr 15, 2025, 12:25 PM
UBS predicts China’s economy struggles with 3.4 percent growth in 2025
Provocative
- UBS forecasts China’s economic growth at 3.4 percent in 2025, down from a prior estimate of 4 percent.
- The forecast indicates a significant decline in exports due to US tariffs, which are expected to cut shipments to the US by two-thirds.
- The combination of tariff impacts and projected fiscal stimulus suggests a challenging economic environment for China moving forward.
On April 15, 2025, UBS issued a forecast indicating that China's economy is expected to grow by a mere 3.4 percent due to the effects of US tariffs on exports. This represents a significant downgrade from their prior estimation of 4 percent growth. The Swiss bank's latest forecast is the most pessimistic among major financial institutions, and it follows a series of downgrades made by other global banks, including Goldman Sachs and Citigroup, who have similarly revised their outlooks for the Chinese economy downward. Many economists are now skeptical that China can achieve Beijing's official growth target of around 5 percent for 2025. UBS analysts attribute the anticipated slowdown primarily to the
Opinions
You've reached the end