Goldman Sachs Group Inc. has revised downwards its forecast for China’s economic growth this year to 4% from 4.5%, citing worse-than-expected economic data for April, according to Bloomberg.
The bank’s analysts also reduced their forecast for GDP growth in the second quarter to 1.5% on an annual basis, from 4% previously.
The estimate for the year as a whole is based on the assumption that Covid-19 will remain largely under control, the real estate market will improve and the government will boost infrastructure spending, Goldman said.
“Despite the significant financial costs from the effort to control the executive in March and April, the country’s leadership has not abandoned the goal of GDP growth of close to 5.5%, while in May it further strengthened its efforts within the zero-case policy “, say the bank’s economists in their analysis.
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