World News

HSBC cuts China economic growth forecast on coronavirus impact

LONDON (Reuters) – HSBC said on Thursday it had lowered its first-quarter forecast for mainland China’s economic growth to 4.1% year-on-year from 5.8% due to the fallout from coronavirus.

The bank also cut its China full-year growth forecast to 5.3% from 5.8%, adding the impact was already starting to be felt in tourism, trade, supply chains and elsewhere.

HSBC lowered its full-year estimate for global growth to 2.3% from 2.5%, adding it expected the brunt of the impact in the first quarter, with some improvement as the year progresses.

(Reporting by Tom Arnold; Editing by Alison Williams)