Goldman Cuts China’s GDP Growth Forecast Amid Energy Constraints

(Bloomberg) -- Goldman Sachs Group Inc. economists lowered their forecast economic growth for China this year, saying recent sharp cuts to production in a range of high-energy-intensity industries add to significant downside pressures on the outlook.

“Considerable uncertainty remains with respect to the fourth quarter, with both upside and downside risks relating principally to the government’s approach to managing the Evergrande stresses, the strictness of environmental target enforcement and the degree of policy easing,” Goldman said in a research note Tuesday.

The bank cut its forecast for 2021 economic growth to 7.8% from 8.2% and for 2022 to 5.5%.

Nomura Holdings Ltd., China International Capital Corp. and Morgan Stanley have also either downgraded GDP growth forecasts or have warned of lower growth because of the power disruptions.

©2021 Bloomberg L.P.