Goldman lowers China’s growth forecast

International investment bank Goldman Sachs lowered its economic growth forecasts for China on Sunday. Goldman noted that the government’s current stimulus levels will provide less support to the economy than previously thought.

The investment bank joins the list of other big banks that have lowered its expectations for China’s economic recovery this year, cutting its 2023 gross domestic product (GDP) forecast from 6 percent to 5.4 percent.

The bank said in a note Sunday that the country’s continued stimulus is weak from generating a strong “growth spur” and will result in a slower recovery despite the lifting of Covid-19 measures earlier this year.

Goldman Sachs also lowered its second-quarter GDP outlook to 1 percent quarter-on-quarter from 4.9 percent, but anticipates an improvement in potentially more stimulus measures in the second half of the year.