Goldman cuts China’s growth forecasts, citing power crunch as ‘yet another growth shock’

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Workers at the Zhong Tian (Zenith) Steel Group Corporation in Changzhou, China's Jiangsu province on May 12, 2016.Kevin Frayer | Getty Images News | Getty ImagesGoldman Sachs economists have cut their forecasts for China's economic growth in 2021 as the world's second-largest economy faces "yet another growth shock" in the form of constraints on energy consumption. The Wall Street banking giant now expects China's GDP to grow 7.8% in 2021 compared with a year ago — that's lower than its previous forecast for an 8.2% year-on-year expansion. Goldman's downgrade followed similar moves by Nomura and Fitch."A relatively new, but tightening, constraint on growth comes from increased regulatory pressure to meet environmental targets for energy consumption and energy intensity," the economists said in a Tuesday report.Chinese President Xi Jinping announced in September last year that China is aiming to reach peak carbon emissions by 2030 and become carbon neutral by 2060. That kicke
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