According to a research report today, Goldman Sachs Group Inc lowered its full year 2010 forecast for growth in China real gross domestic product to 10.1% from 11.4%.
Citing China monetary tightening policies, Goldman economists Mr Yu Song and Ms Helen Qiao wrote that QoQ real GDP growth will slip to 8% or below in the second half of 2010 before rebounding. They left their forecast for full year 2011 GDP growth unchanged at 10%.
Goldman also revised down its full year estimate of China consumer price index inflation for 2010 to 2.4% from 3.5%. The estimate for 2011 full year inflation was cut to 1.3% from 2.8%.
The economists wrote that "We foresee monthly inflation to moderate significantly from June onwards and there are risks of a short-lived period of deflation in Q3 2010 especially if policy makers do not relax the policy stance soon."