China energy curbs could cut economic growth to 6% – Barclays

Economists at Barclays predict that China’s restrictions on the country’s power usage could trim the economic growth to 6% in 2021.

Key quotes (via Bloomberg)

“The government faces a tough choice between a more significant economic slowdown and relaxing its dual targets for overall energy use.”

“Curbs on power usage for the most energy-intensive sectors are likely to continue through the first quarter of 2022.”

But overall Beijing is likely to “adopt a more flexible approach to its targets” rather than tolerating a sharp slowdown in growth.”

“Still, even a moderate enforcement scenario could reduce growth by 1-3% in the next two quarters.”