On September 6, US-based global investment bank and securities firm Goldman Sachs announced that it has downgraded China's economic growth forecast for 2012 from 7.9 percent to 7.6 percent, citing recent weaker key economic data from China and unexpectedly soft exports amid worsening global conditions, and also taking into account domestic structural challenges. Goldman Sachs has also cut its forecast for Chinese economic growth in 2013 from 8.5 percent to 8.0 percent.
"Following further deceleration of construction-related activities and weakening global demand, China's economy has stabilized at a subdued rate of growth in recent months," Goldman Sachs analysts stated in a note to clients.
The note continued, "We believe the deterioration in cyclical indicators and weaker-than-expected exports are headwinds that will keep the economy softer than expected in the next few quarters."
Goldman Sachs also said that China's transition to an economy driven more by domestic demand and less by exports and investment has been slow.