Goldman Cuts China’s 2023 Growth Forecast as ‘Zero Covid’ Stays

This photo taken on Sept. 1 shows police officers checking information on a road amid restrictions due to an outbreak of the Covid-19 coronavirus in Chengdu, in China's southwestern Sichuan province. Photo: Bloomberg

(Bloomberg) — Goldman Sachs Group Inc. cut its 2023 economic growth forecast for China sharply, predicting Beijing will stick to its stringent “zero-Covid” policies through at least the first quarter of next year.

Gross domestic product will probably increase 4.5% in 2023, down from a previous projection of 5.3%, Goldman’s economists led by Hui Shan wrote in a note. This year’s prediction of 3% was maintained.