Chinese power cuts threaten growthMIXED MESSAGE: State Grid said that upcoming power outages to affect Beijing are part of ‘planned maintenance,’ despite media reports of a nationwide power crunchAFP, BEIJINGGoldman Sachs Group Inc yesterday lowered its annual economic growth forecast for China as nationwide power cuts hit millions of homes and halted production at factories, including some supplying Apple Inc and Tesla Inc.At least 17 provinces and regions — accounting for 66 percent of the country’s GDP — have announced some form of power cuts in the past few months, mainly targeting heavy industrial users, Bloomberg Intelligence data showed. Earlier this month, coal prices hit a record high, with restrictions imposed on businesses and homes amid the supply crunch. Still, China’s power demand in the first half of the year exceeded pre-pandemic levels, the Chinese National Energy Administration said. Goldman Sachs said it expects growth to come in at 7.8 percent, down from 8.2 percent, citing power cuts that led heavy industries to cut output, leading to “significant downside pressures.”It is the second bank to downgrade forecasts in as many days. It cut its annual GDP growth forecast to 7.7 percent.

Source: Taipei Times September 28, 2021 15:56 UTC