Goldman Sachs has slashed its growth forecast for China from 8.2% in 2021, to 7.8%, as the energy crisis hits the country’s industrial output, APA reports citing Investment Week.
According to Reuters, the bank issued a note in which it said that the industrial output cuts caused by power outages in China add "significant downside pressures".
It has estimated that 44% of China's industrial activity has been affected.
As a result, economists at the bank said that China's economy is now expected to grow 4.8% in the third quarter of 2021, down from its previous forecast of 5.1% for the quarter, and 3.2% in the fourth quarter, compared to its earlier estimate of 4.1%, CNBC said.
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