Expectations for the Chinese economy have worsened in March, according to the latest China Economic Panel survey by ZEW and Fudan University, with international market experts lowering their projections about the country's economic development over the next year.
The CEP indicator deteriorated further, to negative 25.0 points from negative 13.5 points recorded in the previous month. It was the 12th consecutive month that the indicator has been below average.
The forecasts for China's current economic situation edged down 0.4 point month over month, to 13.9 points.
The expectations for the country's 2019 real GDP growth edged up 0.1 percentage point month over month, to 6.2%, falling in the target range prescribed by Chinese Premier Li Keqiang. Meanwhile, the expectations for real GDP growth in 2020 remained stable at 6.0%.
Earlier in March, China lowered its growth target for 2019 to a range of 6% to 6.5% from a target of 6.5% growth in the past two years and announced tax cuts to help stimulate the economy in a bid to support the economy to deal with the adverse impacts of the U.S.-China trade tensions.
While the U.S. and China continue to work on a trade deal, China is limiting its new economic stimulus program to put a lid on its credit impact, a move to hedge against volatility amid trade tensions with the U.S., according to an S&P Global Ratings research report published earlier in March.