Nomura cuts China 2021 growth forecast to 7.7% from 8.2%

FILE PHOTO: A woman uses a mobile phone inside a cafe as a crane next to buildings is reflected on a glass window, in Tianjin, China September 7, 2021. REUTERS/Tingshu Wang

BEIJING (Reuters) - Analysts at Nomura cut their forecast for China’s annual gross domestic product (GDP) growth in 2021 to 7.7% from 8.2% on Friday, citing the impact of factories pausing operations amid power outages and environmental policies.

“Over recent weeks, a surging number of factories across China have been forced to cease operations,” due to higher coal prices hitting power supplies and government mandates to meet carbon emission reduction targets, they said in a note.

This downward pressure on growth comes on top of curbs on the property sector which have added to the debt woes of struggling property giant China Evergrande Group, they added.

Reporting by Gabriel Crossley; Editing by Simon Cameron-Moore