China's economic recovery still solid, says BBVA

HONG KONG -China's economic recovery is still solid, with Q1 GDP registering a record-high year-on-year growth rate of 18.3%, according to official figures. BBVA Bank says Chinese authorities are phasing out their policy stimulus.

"More policy attention has shifted to winding down the legacy debt caused by the anti-pandemic relief measures and tackling financial vulnerabilities," BBVA says. " The supply and demand gap further narrowed, making the recovery more healthy and sustainable."

BBVA says a neutral but still accommodative monetary policy is the main stance in 2021. But there will be "no sharp turnaround".

BBVA is forecasting China's 2021 GDP growth to bounce back to 7.5% (Bloomberg consensus: 8%; IMF: 8.4%).