China’s GDP growth rate slowed to 8.1 per cent, which was well below economists’ average estimate calling for 8.4 per cent growth.
However, JP Morgan’s Jing Ulrich isn’t too worried. Ulrich is chairman of global markets for China.
“We were looking for 8.2 per cent,” said Ulrich in an interview with Bloomberg Television this morning. “Considering the headwinds China is facing in exports. Considering the slowdown in China’s property sector. The 8.1 per cent was in line with expectations.”
Ulrich sees three to four cuts coming in China’s official reserve requirement ratio (RRR), which should help boost growth.
“We’re looking for a slight rebound in the second half of 2012. The central government shifted away from fighting inflation to supporting growth just a few months ago. So in the next several months, we would expect economic growth to stabilise and gradually recover.”
JP Morgan currently sees China growing 8.4 per cent in 2012.
Here’s the interview courtesy of Bloomberg: