Goldman Cuts China’s Growth Forecast to 4% on Covid Policy

(Bloomberg) — Goldman Sachs Group Inc. cut its 2022 economic growth forecast for China to 4% as the government doubles down on its “zero-Covid” policy under which major cities including Shanghai imposed lockdowns for weeks.

The investment bank lowered its projection for gross domestic product growth from the previous 4.5% and also slashed its second-quarter estimate to 1.5% year-on-year from an earlier prediction of 4%. Full-year growth is based on the assumption that Covid will remain mostly under control, that the property market will improve and that the government will increase infrastructure spending, Goldman’s economists including Hui Shan wrote in a note.