Goldman cuts China growth forecast

Goldman Sachs has cut its growth forecast for the Chinese economy in the latest sign of pessimism over the country’s muted post-Covid recovery. International investment bank Goldman Sachs on Sunday cut its economic growth forecast for China. Goldman said the government’s current levels of stimulus would provide less support to the economy than previously thought. The investment bank cut its 2023 gross domestic product (GDP) forecast to 5.4% from 6%, joining a list of other major banks that have lowered their expectations for China’s economic recovery this year. The bank said in a note on Sunday that the country’s ongoing stimulus had failed to generate a strong “growth impulse” and would result in a slower recovery despite the lifting of Covid-19 restrictions earlier this year. Goldman Sachs also lowered its second-quarter GDP outlook to 1% quarter-on-quarter from 4.9%, but sees an improvement on potential further stimulus measures in the second half of the year.