by Martin Armstrong
Armstrong Economics
ASIA:
Goldman Sachs has cut China’s growth forecast to 7.8 percent this year from the previously estimated 8.2 percent as the world’s second largest economy faces “yet another growth shock” in the form of constraints on energy consumption. The country is already battling to save Evergrande amid fears that Chinese property behemoth could turn out into a ‘Lehman moment’ for the global markets and economy. Goldman Sachs has lowered the year-on-year forecasts for China’s economy to 4.8 per cent in the third quarter and 3.2 percent in the fourth quarter of 2021 compared to 5.1 percent and 4.1 percent respectively for the third and fourth quarters of the previous financial year. On a quarter-on-quarter basis, the Wall Street banking giant has slashed its forecast for China to 0 percent in the third quarter from a previous forecast of 1.3 percent, and 6 percent in the fourth quarter from the earlier estimated 8.5 percent.
The major Asian stock markets had a mixed day today: