Credit score deceleration (deleveraging) is the principle issue liable for the slowdown in China’s economic system, based on Goldman Sachs Chief Economist Jan Hatzius.
The Chinese language economic system expanded at an annualized price of 6.four % within the fourth quarter, the weakest progress price since early 2009, pushing the 2018 GDP to a 28-year low.
Whereas most blame the anemic home demand and the commerce conflict for Chinese language slowdown, Goldman Sachs’ Hatzuis believes the crackdown on extra leverage is primarily liable for cooling economic system.
Fed pause in price hikes is suitable.
Doesn’t see a necessity for main modifications in international forecasts.
Sees some stabilization within the second half of this yr.