BofA Securities economists said China's economy will likely improve modestly in the coming quarters.
BofA economists said more favorable fundamentals and industry-specific policy measures have helped ease the pressure, but China's economy will continue to grow in an environment where supply growth outpaces demand. Looking ahead, BofA expects producer price deflation to slow gradually in the coming months, thanks to more favorable fundamentals over the past year and continued policy efforts to limit overinvestment and excessive competition. Economists added that consumer prices are likely to remain deflated next quarter as overall consumption dynamics remain tepid.
