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Citi Cuts China's 2012 Growth Outlook to 7.8%

Citi on Monday cut its 2012 China growth forecast to 7.8% from 8.1% previously, saying the move reflects slower domestic growth in the second quarter and a further weakening of conditions in the European Union. Citi said China appears to have stabilized at a low level of growth, noting that second-quarter growth will likely ease to 7.3% from a year earlier. It said China was unlikely to roll out a 2008/2009-style stimulus package unless "the sovereign-debt problem in Europe escalates to a full-blown economic and financial crisis and results in a deep recession in the continent." Write to Chris Oliver at AskNewswires@dowjones.com

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