Why China's growth forecasts should be nudged lower

China's anti-corruption measures are having the unintended effect of slowing corporate investment, and the drag on the economy will be bigger than expected, explains Martin Currie's Andrew Graham.

Sluggish revival The global macroeconomic backdrop has improved, yet the overall recovery has been tepid in the five years since the global financial crisis. This is despite unprecedented support from central banks in the form of zero interest rates and outright liquidity injections, particularly in developed economies, and by more conventional economic stimulus measures, most notably in China. The relatively sluggish revival is principally due to the effects of consumer and corporate deleveraging, and over recent months, there have been few significant upgrades to global economic ...