Goldman Sachs (GS.N) analysts have lowered China’s economic growth projections due to consistently low confidence and the housing market’s cloud.
According to a report published late Sunday, the U.S. investment bank dropped its full-year real GDP growth prediction for the world’s second-largest economy from 6% to 5.4%. It reduced its 2024 growth prediction from 4.6% to 4.5%.
As China’s post-pandemic economy falters, Goldman remains bullish despite the decrease. The bank, like others, had recently lowered its currency prognosis for China.
“No reopening boosts have faded as quickly as in China,” claimed analysts led by economist Hui Shan, highlighting the property collapse and its repercussions.
“Growth headwinds are likely persistent while policymakers are constrained by economic and political considerations in delivering meaningful stimulus.”
China’s government set a low GDP growth target of approximately 5% for this year after missing its 2022 goal, and state media reported that the cabinet convened on Friday to consider growth-boosting measures.
Recently, it has decreased numerous important interest rates, preparing the stage for a Tuesday benchmark lending prime rate cut.
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