Goldman slashes China growth forecast on Covid's delta variant uutbreak

Goldman Sachs Group Inc. downgraded its economic growth forecast for China as measures to contain the fast-expanding Covid-19 resurgence curb spending.

The economists cut their projection for quarter-on-quarter growth of gross domestic product in the third quarter and also lowered their full-year GDP growth forecast to 8.3% from 8.6%, according to a report released late Sunday. The prediction assumes the government will bring the outbreak under control in about a month, and follows the downgrade by Nomura Holdings Inc. earlier this month.

Economists led by Hui Shan cut their estimate for annualized growth in the current quarter to 2.3% from