American businesses operating in China have turned bearish about the Chinese economy after more companies reported drops in revenues and market demand as a result of the global coronavirus pandemic, a U.S. business lobby's survey showed on Wednesday.
Some 76% of 119 company executives expressed a pessimistic outlook towards China's future economic growth, according to an American Chamber of Commerce in China (AmCham China) survey.
The survey showed that the consumer, resource and industrial sectors are most pessimistic about the disease's impact, with 38% of them expecting a decrease of 50% or more in future growth.
On Monday, a prominent investment bank in China — China International Capital Corp — cut its 2020 GDP forecast for China to 2.6%, sharply down from 6.1% in January, according to the South Morning China Post.
That compared with Nomura Bank, which has slashed its 2020 growth forecasts for China to 1.3% from the previous 4.8%, while Bank of America Merrill Lynch has also cut its China forecast for this year to 1.5%.
The AmCham survey, conducted before March 18, also showed that 50% of respondent companies were experiencing significant revenue declines and 39% said demand for their products was down — respectively up from 28% and 22% in last month's survey.
Already, 14% of respondents were seeing a daily loss of $70,705 (500,000 yuan), up from 10% in Feb.
If businesses fail to return to normal by the end of April, 57% of respondents, up from 48% in February, expect this year's revenues in China to decrease.
Should businesses only return to normal after September, half of respondents expected a revenue drop of under 50% while another 13% expected a drop greater than 50%, according to the survey.
Source : VOA