Energy Shortage Hitting GDP Growth in China, Asia and the World

Goldman Sachs cut its China’s economy growth estimate to 7.8% in 2021 from its old forecast of 8.2%. S&P Global Ratings also lowered its 2021 GDP forecast for China, and said uncertainty in the Chinese economy will affect growth prospects across Asia-Pacific. Japanese bank Nomura cut its China’s GDP growth estimate by 7.7% this year, down from 8.2% previously forecast.

Goldman Sachs lowered its third-quarter China GDP growth forecast to 0% quarter-over-quarter, from a previous forecast of 1.3%. They cut the China fourth-quarter forecast to 6% from 8.5%. Year-over-year growth forecasts were cut from 5.1% to 4.8% for the third quarter and 4.1% to 3.2% for the fourth.

ADB (Asia Development Bank) cut its forecasted growth for Asia to 7.1% this year and this compares with a projection of 7.3% in April.

Fitch Ratings expects world GDP to grow by 6.0% in 2021, slower than our 6.3% growth forecast in the June Global Economic Outlook (GEO). Supply constraints are limiting the pace of recovery and we have revised down our US 2021 GDP forecast to 6.2% from 6.8% in June.

SOURCES- CNBC, Barrons, ADB, Fitch Ratings
Written by Brian Wang, Nextbigfuture.com