China’s growth outbreak has been downgraded due to coronavirus
The continuous worries regarding the outbreak of coronavirus and its impact on the economic growth is causing the fund managers to make cuts in their expectations of the GDP of China to the lowest levels they have been in over four years.
The investment professionals are now seeing the economy of china worth $12 trillion rising at an average of 5.2% in the next three years. As per the survey done for the month of February.
The level is still one which any developed economy is going to envy, it is below the levels which have been on an average maintained by China in the last three years which were around the level of 6.6% and the levels of 10.6% which were there a decade ago and it is also the lowest the outlook has been since the month of September in 2015. The view which is highly pessimistic has been coinciding with all the other general perceptions regarding the economy.
The expectations of growth globally has fallen from the levels it was at in January before the outbreak of the coronavirus intensified as 48% of these respondents are seeing the economy get stronger but 29% are expecting it to go weaker.
The pros on the Wall Street are still seeing the rise in stocks although they have repositioned the portfolios in a dramatic manner.
The investors have attributed a lot more positive view on the equities to the probability that Fed will be keeping the rates of interest lower.
It has also been noted that in the month of February, the sentiment has dipped overall but the firm is bullish on these markets because of a complete capitulation.