U.S. investment bank Goldman Sachs lowered its forecasts for China's GDP growth to 4% in 2025 and 3.5% in 2026 in a report published on Thursday, from 4.5% and 4.0% previously, citing the effects of tariffs.

Goldman Sachs revised down its economic growth forecasts for China, citing the expected negative effect of tariffs on the country’s economy and labor market. The bank now projects China’s real gross domestic product to rise 4% in 2025 and 3.

Goldman Sachs economists lowered their forecast for China’s growth Thursday after President Donald Trump increased tariffs on the country’s goods to 125%. The bank now expects gross domestic product (GDP) to grow 4% in 2025 and 3.