Mubasher: Goldman Sachs has reduced its forecasts for China's GDP growth to 4% in 2025 from 4.5% previously, according to Reuters.

In a report published on 10 April, the US investment bank also cut 2026 forecasts to 3.5% from 4% previously, citing the effects of tariffs.

"We anticipate the Chinese government will further intensify policy easing, projecting 60bp of policy rate cuts (vs. 40bp previously)."

The report added that "even these significant easing measures are unlikely to fully offset the negative effects of the tariffs."

Despite expectations that additional tariff increases will have a "diminishing marginal impact," the substantial rise in US tariffs on China is projected to significantly weigh on the Chinese economy and labor market, Reuters cited Goldman Sachs.

The investment bank made the revision for the world's second economy and also the second biggest provider of US imports after President Donald Trump hiked the tariff on Chinese imports to 125% from the 104% level that kicked in on 9 April.