Goldman Sachs Lowers Its Forecast For China’s Economic Growth Due to Corona

The US bank, Goldman Sachs, cut its growth forecast for China, as it faces a difficult battle to contain the spread of the fast-spreading Corona mutated, and the US investment bank now sees that the economy will grow 4.#% this year, compared to 4.8% its previous forecast.

Economists at the bank said that the negative impact of infection and restrictions imposed by China in light of its zero-tolerance policies against Coronavirus will mostly be prominent during the first quarter of 2022.

He stated that the economy will witness a recovery in the following three months, assuming control of the outbreak of the virus, after the winter months, as well as coinciding with the widespread deployment of booster vaccines.

According to Bloomberg News, Goldman Sachs’ expectations are lower than the average forecast at 5.2%, and according to expectations, Beijing aims to grow at least 5% this year.

On the market front, the Chinese technology stock index rose, by the most in 3 months, in light of expectations of more monetary policy easing to contain the slowdown in growth.