Monday, October 25, 2021

Goldman cuts China’s GDP growth forecast over lack of energy supply

Power lines and wind turbines are pictured at the State Grid Corporation of China’s wind and solar energy storage and transmission power station in Zhangjiakou, China’s Hebei province on March 18, 2016. (Jason Lee/Reuters)

Shanghai-Goldman Sachs has cut China’s economic growth forecast for 2021 from 8.2 percent to 7.8 percent, as energy shortages and deep cuts in industrial output add “significant downside pressure”, it said in a note on Tuesday. has gone.

A lack of electricity supply due to environmental controls, lack of supply and rising prices has forced industries across the country to cut production, and left many provinces scrambling to guarantee electricity and heating for residents. Is.

Goldman Sachs has estimated that up to 44 percent of China’s industrial activity has been affected, leading to a 1 percent drop in annual GDP growth in the third quarter, and a 2 percent cut from October to December.

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China’s economy is already taking a toll on the property and tech sectors and cash-strapped real estate giant China is worried about the future of Evergrande.

Goldman said, “There remains considerable uncertainty with respect to the fourth quarter, with both upside and downside risks primarily related to the government’s approach to managing Evergrande stresses, the strictness of environmental target enforcement and the degree of policy easing.” “

Reuters

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This News Originally From – The Epoch Times

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