Economists are turning even more bearish on China’s growth outlook, cutting their 2022 GDP forecasts and moving far away from the government’s original target of around 5.5% set for the year, per Bloomberg.

Key takeaways

“Goldman Sachs Group Inc lowered its projection for gross domestic product growth to 3% from 3.3% while Nomura Holdings Inc slashed its forecast to 2.8% from 3.3%.” 

Nomura economists said, “China’s growth in the second half is likely to be significantly hampered  by the Covid Zero policy, as well as a deteriorating property sector, local governments’ worsening fiscal conditions, and a likely slowdown in export growth.”

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