Goldman Sachs is the latest major bank to cut China’s economic growth forecast as the world’s second largest economy is struggling to post strong growth after coming out of strictest Covid-19 lockdown in the world.
The investment bank joined other big names such as UBS, Standard Chartered, BoA, and JPMorgan that previously downgraded China’s GDP growth last week. Goldman Sachs cut China’s full-year economic growth forecast in 2023 to 5.4% from 6%, adding that there is further turbulence ahead for the economy.
Goldman Sachs noted that it sees further stimulus to come from the Chinese government in an attempt to shore up the economy. Still, the firm wrote that these new measures will not be enough to overcome the greater problems that it faces: weakened sentiment.
Global oil prices edged lower on Monday, erasing more than half of the gain they made last week as world’s leading banks started to cut China’s economic growth in 2023.
As of 9:52 BKK time on Monday, the international benchmark Brent crude decreased $1.19 or 1.55% to $75.42 per barrel. Meanwhile, West Texas Intermediate (WTI) fell $1.00 or 1.39% to $70.75 a barrel.
Last week, Brent gained 2.4% and WTI rose 2.3%. However, banks were publishing their research as well, especially on cutting economic growth of China this year due to its sluggish growth.
