Goldman Sachs analysts said on Wednesday they were lowering their 2022 China GDP growth forecast to 4% from 4.5% as a result of Covid-19-related damage to the economy in the second quarter of this year. year.
China’s economy is more likely to miss than exceed its target, they added.
“Even this lower growth projection incorporates the assumption that Covid will be largely under control in the future, that the housing market will improve from here, and that the government will provide substantial compensation through infrastructure spending in the coming months,” they wrote. .
China’s retail and industrial activity fell sharply in April as Covid-19 lockdowns confined workers and consumers to their homes severely affected supply chains.
This year, the country has again restricted and confined millions of people on its territory to try to contain the new outbreaks of Covid in the country. The Asian government tries to limit the movement of people as much as possible in order to achieve its goal of “zero Covid”.
As a result, megalopolises such as the capital Beijing, with 21.5 million people, and Shanghai, the country’s largest city, with 25 million, have imposed lockdowns and contact tracing to try to reduce new cases and deaths.
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