- China’s Q3 GDP growth picked up to 4.9% yoy, a bit softer than expected.
- However, monthly activity data suggest the recovery is still strengthening and broadening to the demand side.
- We maintain our 2020 growth forecast of 2.1% , although weaker activity in Q3 highlights downside risks. China will most likely be one of the few countries around the globe able to post positive real growth in 2020.
- Given the ongoing demand recovery, we expect the PBoC to stay on the side-lines for the time being.