2024-09-17 10:57:26
Goldman Sachs and Citigroup cut their forecast for the annual growth of the Chinese economy to 4.7 percent after the data announced that the world’s second largest economy registered its lowest level of industrial production in August. for five months, reported Reuters. This was reported by BTA.
Weak activity during the month focused attention on the slow recovery of China’s economy and underscored the need for new measures to stimulate falling consumption, the agency said.
As a result, many global companies cut their forecast for China’s economic growth below the government’s 5 percent target.
The previous forecast of “Goldman Sachs” was for growth of 4.9 percent, and of “Citigroup” – of 4.8 percent.
Industrial production in China expanded 4.5 percent in August from 5.1 percent in July. This was the weakest increase since March, Office for National Statistics data released on Saturday showed.
Retail sales, a key indicator of the level of consumption, rose 2.1 percent in August, down from 2.7 percent in July and below the 2.5 percent analysts expected.
According to “Goldman Sachs”, Beijing will not be able to realize the target growth of its economy of 5 percent during the year. For the next year, the bank expects a growth of 4.3 percent.
Citigroup, on the other hand, expects the Chinese economy to expand next year by only 4.2 percent due to a lack of domestic incentives for growth.