July 22, 2010 (Chinavestor) Citigroup (NYSE:C) lowered its 2010 China GDP growth estimates to 9.5% from 10.5% after China disappointed global investors with GDP growth of 10.3%. That followed 11.9% growth in the first quarter. Citigroup (NYSE:C) also lowered its forecast for the U.S. and emerging markets for 2010 and 2011 while its 2011 outlook for Japan, the second-largest economy in the world.
China's efforts to rein in property prices and Europe's sovereign debt crisis have given investors pause about the strength of the global economic recovery. On Wednesday, Federal Reserve Chairman Ben Bernanke said the outlook for an international recovery remains uncertain, comments that sent U.S. equities tumbling.
Citigroup (NYSE:C) did note that inflation in China is cooling due to slower economic growth. The inflation rate eased to 2.9% in June from 3.1% in May while property prices in 70 Chinese cities fell 0.1% in June from May, snapping 15 months of gains, according to Bloomberg News.
Germany's Deutsche Bank (NYSE:DB) expects China's economy to grow 9.6% this year and 8.6% in 2011. Citigroup (NYSE:C) expects U.S. GDP to grow 2.8% this year and 2.6% next year, down from previous estimates of 3.2% and 2.8%, respectively.
The bank cut its forecasts for growth in emerging markets to 6.6% this year and 5.8% in 2011, Bloomberg reported.