Jul 15, 2022
Goldman Cuts China’s Growth Forecast to 3.3% After Weak GDP Data
Bloomberg News
,(Bloomberg) -- Goldman Sachs Group Inc. downgraded its forecast for China’s full-year economic growth to 3.3% from 4% after official data Friday showed GDP expanded at a slower pace than economists expected in the second quarter.
The figures suggest Covid lockdowns in April and May took a heavier-than-expected toll on the economy, Goldman economists including Wang Lisheng said in a note Friday. The growth recovery will likely be less steep than in 2020, as a resurgence in Covid cases in July may constrain a rebound in services activity, they said.
Fiscal and credit easing may play a more important role in coming months, the economists added.
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