China is anticipated to reduce key lending benchmarks in an effort to bolster it’s slowing economic recovery. The move comes after recent data indicated struggles in the retail and factory sectors, raising concerns about the potential stalling of China’s post-COVID comeback and the accompanying risk of significant job losses.

Goldman Sachs Group Inc. has reduced its projections for China’s economic growth, citing the Asian country’s limited alternatives for increasing stimulus. Bloomberg stated that the bank cut its forecast for China’s GDP growth this year to 5.4% from 6% earlier.

China’s Economy recovered from the COVID-19 pandemic hit a stumbling block in May, as industrial output and retail sales growth fell short of expectations. The slowdown in the second quarter has prompted the country’s central bank to cut key interest rates for the first time in nearly a year, with further cuts anticipated. Analysts are expressing concerns over a potential economic double dip and are revising their GDP growth forecasts for 2023 and 2024.

The October-December gross domestic product (GDP) rose 2.9 percent year-on-year, the National Bureau of Statistics of China (NBS) announced on Tuesday. The ratio still beat market expectations for a 0.4%