The U.S. bank on Wednesday lowered its third and fourth quarter growth forecasts to 7.1 percent from 7.3 and 7.2 percent, respectively. It expects growth to slow to 7.3 percent this year from 7.7 percent last year.
"August activity data posted a large downside surprise…risks are clearly skewed to the downside of these figures, particularly for Q3, given the sharp tightening in credit seen in July and August," the bank wrote in a report.
Goldman also cut its 2015 growth estimate to 7.1 percent from 7.6 percent on expectations that the government will reduce its growth target next year in order to limit the accumulation of financial risks and reduce pressure for policy stimulus.
While China will benefit from stronger global demand spearheaded by the U.S., slower infrastructure and property investment will continue to weigh on growth, the bank said.
Sub 7-percent growth near
Goldman expects growth to decelerate to around 6.7 percent in 2016 and 2017 as potential growth – the rate of economic growth that is sustainable in the medium run without triggering inflationary pressures – slows.