Goldman explains why China will emerge from the Iran war with a leg up on the US
Chris Hondros/Getty Images China is positioned to be more resilient than the US amid rising oil prices, Goldman Sachs says. The firm estimates that China will see a smaller drag on GDP than due to Iran-war oil shocks. Goldman also says higher energy prices will help with deflation in China, boosting growth. Goldman Sachs strategists says that the Chinese economy is better positioned than other nations — including the US — to withstand the historic oil shock from the ongoing war in Iran. The firm's economists said the war will be a 20-basis-point drag on Chinese GDP, half of the 40-basis-point hit estimated for the US. Goldman credited China's economic resilience to Beijing's strategic energy diversification efforts. Crude oil and liquified natural gas made up 28% of China's primary energy consumption in 2024, the lowest in the world. Further, alternative and renewable energy accounted for 40% of China's electricity generation over the same period. Ano...
