Goldman slashes China's 2023 growth forecast

Country seen as unlikely to begin reopening before second quarter

Goldman Sachs sharply cut its 2023 economic growth forecast for China, predicting Beijing will stick to its stringent zero-Covid-19 policies through at least the first half of next year.

Gross domestic product (GDP) will probably increase 4.5 per cent in 2023, down from a previous projection of 5.3 per cent, Goldman's economists wrote in a note. There was no change to the prediction of a3 per cent expansion in 2022.

China is unlikely to begin reopening before the second quarter of 2023 as it will first try and ensur that higher vaccination rates for the elderly, more manufacturing of cheap and effective Covid-19 pills and other conditions are in place, Goldman said.