Goldman Cuts China 2022 Growth Forecast to 4.3% Citing Omicron

(Bloomberg) — Goldman Sachs Group Inc. cut its forecast for China’s economic growth this year to 4.3% citing the increased difficulty of containing the more-contagious omicron variant of Covid-19.

The downgrade from the bank’s previous projection of 4.8% incorporates a drag of 0.9 of a percentage point from Covid-related restrictions, which will be partly offset by monetary and fiscal easing, economists including Goldman’s chief China economist Hui Shan said in a note.