Daily Management Review

Goldman Sachs cuts Chinese GDP forecast


The Chinese economy will grow less than expected in 2023 and 2024, from 4.6% to 4.5% and from 6% to 5.4%, respectively, according to Goldman Sachs analysts.

Bank of America, JP Morgan Chase, and Swiss bank UBS analysts had already revised their predictions regarding the dynamics of the Chinese GDP in the current year downward. According to the Chinese government, this year's GDP growth will be 5%.

Goldman Sachs analysts cited statistical data from the previous two months in their explanation of their choice regarding the slowing in China's economic recovery following the relaxation of anti-COVID regulations.

The manufacturing activity index (PMI) for China, according to the Office of National Statistics, was just 48.8 points in May, which indicates a fall in activity (below 50 points). The indicator has dipped to a level last seen in December of last year, when China loosened its tough anti-crisis regulations, a low not seen in five months.

The People's Bank of China stated on June 15 that it had decreased the refinancing rate for one of its medium-term loan programs from 2.75% to 2.65% in an effort to boost the economy. The value of the one-year credit scheme is 237bn ($33bn).

source: cnn.com