UBS cuts China 2011, 2012 GDP forecasts amid global slowdown on Thursday

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

UBS said it now expects 2011 gross domestic product growth of 9 percent, down from its earlier projection of 9. 3 per cent. For 2012, this sees GDP growth of 8. 3 per cent, down from its previous forecast for 9 percent.

"A significant drop in export growth, which could start in Q4 2011, can also be expected to affect manufacturing investment and consumption, " UBS wrote in an email to clients.