Goldman Sachs, Nomura cut China’s GDP outlook

Economists are turning even more bearish on China’s growth outlook, cutting their 2022 GDP forecasts and moving far away from the government’s original target of around 5.5% set for the year, per Bloomberg.

Key takeaways

“Goldman Sachs Group Inc lowered its projection for gross domestic product growth to 3% from 3.3% while Nomura Holdings Inc slashed its forecast to 2.8% from 3.3%.” 

Nomura economists said, “China’s growth in the second half is likely to be significantly hampered  by the Covid Zero policy, as well as a deteriorating property sector, local governments’ worsening fiscal conditions, and a likely slowdown in export growth.”

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