Goldman Sachs and Citigroup Lower China's Economic Growth Projections

Goldman Sachs and Citigroup have downgraded their full-year economic growth forecasts for China to 4.7%, following a significant slowdown in industrial output. The weak performance in August has intensified concerns about China's recovery, prompting calls for further stimulus measures. Both institutions foresee growth below the government's target.

Goldman Sachs and Citigroup have revised their full-year economic growth projections for China to 4.7%. This comes after the world's second-largest economy saw its industrial output fall to a five-month low in August, underscoring the sluggish recovery and the need for additional stimulus measures to boost demand.

Global brokerages, including Goldman Sachs and Citigroup, have adjusted their 2024 growth forecasts to below the government's target of around 5%. Initially, Goldman Sachs had expected a 4.9% growth rate, while Citigroup projected 4.8%. However, recent economic indicators have led both firms to lower their expectations.

As of August, China's industrial output grew by 4.5% year-on-year, the slowest pace since March, according to data from the National Bureau of Statistics (NBS). Retail sales rose by 2.1% in the same month, falling short of analysts' expectations. Both Goldman Sachs and Citigroup emphasize the need for more demand-side measures to meet growth targets.

(With inputs from agencies.)