China's growth slowdown proof tightening policy works: IHS

Goldman Sachs has cut its 2011 GDP growth forecast for China.  The bank downgraded its view to 9.4% from the earlier 10% for this year. They cut their 2012 forecast to 9.2% from their earlier estimate of 9.5%.

Weaker data, higher oil prices and supply-side constraints have led them to trim their China growth forecast, Sachs said. "The slowdown in growth has been even sharper than we forecast, especially evident in April industrial production," it said in a research report. Goldman has also predicted that Chinese inflation will accelerate putting pressure on the economy. For 2011, the report put the number at 4.7% and at 3% for 2011. Meanwhile, according to data released by the Chinese government, the first quarter current account deficit surplus stood at USD 29.8 billion, down 18% from a year back. Todd Lee, Chief Economist