LATEST GEOPOLITICAL NEWS: Goldman slashes China growth forecast over power shortages
By Iain Fraser – Consultant Editor, Gibraltar
Wall street grandees Goldman Sachs have become the latest financial institution to cut its growth forecast for China, as the country struggles with energy shortages. Goldman´s revised forecasts of the super-economy suggests that the economy will rise by 7.8% this year, down from its previous forecast of 8.2% citing an overall decline in industrial output caused by power outages, adding that this alone is causing “significant downside pressures”. It estimates as much as 44% of China’s industrial activity has been affected.
While China is juggling output versus its green credentials the country remains highly dependent on coal for electricity generation currently using about as much coal as the rest of the world put together but it’s also a world leader in wind and solar production. According to the International Energy Agency, between 2019 and 2024 China will account for 40% of the global expansion in renewable energy. Learn More – Register Free