Goldman Sachs cut China’s 2023 growth outlook amid prolonged zero-Covid policy
Goldman Sachs cut China’s 2023 growth outlook amid prolonged zero-Covid policy

Goldman Sachs cut China’s 2023 growth outlook amid prolonged zero-Covid policy

 

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Goldman Sachs cut its 2023 economic growth forecast for China, predicting Beijing will stick to its stringent Covid Zero policies through at least the first quarter of next year.

China’s GDP will probably increase 4.5% in 2023, down from a previous projection of 5.3%, Goldman’s economists led by Hui Shan wrote in a report. There was no change to the prediction of a 3% expansion this year.

China is unlikely to begin reopening before the second quarter of next year and it will first make some preparations such as increasing Covid vaccination rate for the elderly and more manufacturing of cheap and effective Covid pills, etc, the bank said.

The authorities may also want to wait until after the Lunar New Year peak travel season and next March’s parliament session to end the zero-Covid policy, Goldman said.