Goldman Sachs slashed its forecasts for China's growth over the next three years amid broadening pessimism over the health of the world's second largest economy.
The bank on Monday marked down its 2016, 2017 and 2018 projections to 6.4 percent, 6.1 percent and 5.8 percent, respectively from 6.7 percent, 6.5 percent and 6.2 percent, previously. The government is targeting growth of "around 7 percent" this year.
The more gloomy assessment by Goldman is the latest setback for China which has had a tumultuous few weeks. The move by the country's central bank to devalue the renminbi earlier this month startled investors and roiled equity markets the world over. Having seen a feeble impact from efforts to prop up jittery stock markets, Chinese authorities are now reportedly scaling back their market intervention plans.
Goldman's longer-term growth forecasts are based on three factors – labor, capital and productivity.