Deutsche Bank’s Pessimism About China’s Growth Weighs on Dax

The German bank Deutsche Bank on Thursday posted a study with a slower growth in China, which amplified the decline in Frankfurt Stock Exchange.

The growth of gross domestic product (GDP) in China should slow from 10.3% year over year in 2010 to 8.9% in 2011 and 8.3% in 2012, “mainly because of the impact of monetary tightening “said the financial institution in a study.

This is a slight slowdown compared to 2008, but more so compared to the average annual growth before the crisis, 11% between 2002 and 2008, said Deutsche Bank.

This slight tap on the brakes will weigh on Chinese giant’s trading partners. Imports from Germany, Japan and the United States should continue to grow but at a slower pace, according to the study.

In a more pessimistic scenario, the bank is even considering a Chinese growth below 8% in 2011 and below 6% in 2012.

In the first half, growth of the Chinese economy has reached 9.6%.

This note from Deutsche Bank, and that of the U.S. bank Morgan Stanley has lowered its expectations on the global economy, “has exacerbated the downward trend” at the Frankfurt Stock Exchange, said Markus Huber, operator in ETX Capital.

Other stock markets were also in trouble, fearing the slowdown of the global recovery.