MarketWatch. reports that Goldman Sachs has cut its 2021 China growth forecast, citing the fast spread of the highly contagious delta variant of the coronavirus that causes COVID-19.

“With the virus spreading to many of China’s provinces and local governments reacting swiftly to control the spread of the highly contagious delta variant, we have begun to see softening in national aggregate data,” said a team of analysts.

Goldman slashed its third-quarter real gross domestic product forecast to 2.3% from 5.8%, but lifted its fourth-quarter growth forecast to 8.5% from 5.8%, leaving the full-year 2021 projection at 8.3% from a previous 8.6%.