Goldman's China forecast

Following China's last quarter growth data, which was announced yesterday and came in better than expected, Goldman Sachs revised its growth forecast for the country upwards. In a note they shared, Goldman Sachs economists raised their 2023 growth forecast for China from 5.2 percent to 5.5 percent. According to the data announced yesterday in the country, the economy grew by 2.9 percent in the last quarter of last year compared to the same period of the previous year, well above the 1.6 percent estimates. December indicators in retail sales, industrial production and unemployment in the country also exceeded analysts' estimates. Goldman economists stated that the December data was surprising due to Covid-19 cases and widespread labor shortages. It grew by 3 percent in 2022 According to data from the National Bureau of Statistics of China, Gross Domestic Product (GDP) increased by 3 percent compared to the previous year in the January-December 2022 period, reaching 121 trillion yuan (about $18 trillion). This was China's lowest annual output growth since 1976, following growth of 2.2% in 2020, when the first effects of the COVID-19 pandemic were felt. The growth rate also fell short of the Chinese government's growth target of around 5.5% for 2022.