UBS cuts China 2011, 2012 GDP forecasts amid global slowdown

SINGAPORE: UBS lowered its 2011 and 2012 growth forecasts for China on Thursday, saying much weaker growth prospects in developed economies would crimp export growth.

UBS said it now expects 2011 gross domestic product growth of 9 per cent, down from its earlier projection of 9.3 per cent. For 2012, it sees GDP growth of 8.3 per cent, down from its previous forecast for 9 per cent.

“A significant drop in export growth, which could start in Q4 2011, is also expected to affect manufacturing investment and consumption,” UBS wrote in a note to clients.