Goldman Sachs cuts China 2022 growth estimate to 4.3% on Omicron covid woes
|With China facing an uphill battle to contain the rapid spread of the highly-contagious Omicron covid variant, Goldman Sachs economists, including Chief China economist Hui Shan, lowered their 2022 GDP growth projection for the dragon nation.
Key highlights (via Bloomberg)
“Goldman Sachs Group Inc. cut its forecast for China’s economic growth this year to 4.3%.”
“The downgrade from the bank’s previous projection of 4.8% incorporates a 0.9 percentage point drag from Covid-related restrictions, which will be partly offset by monetary and fiscal easing.”
“The negative impact from infections and restrictions as China pursues a policy of virus elimination will mostly be felt in the first quarter of 2022.”
“See a rebound in the following three months, assuming that outbreaks can be controlled more easily after the winter months and as booster vaccinations are more widely deployed.”
“Goldman maintained its call for a 50-basis-point cut in the reserve requirement ratio in the first quarter. “
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.