Goldman Says AI Cannot Sustain China’s Growth

Exports of artificial intelligence-related products have provided a lift to China’s economy as weak domestic demand, a prolonged property downturn and softer traditional investment weigh on activity. Goldman Sachs said the technology sector’s expansion and overseas sales can support near-term growth, but warned that one fast-growing industry is unlikely to sustain the pace of expansion across the world’s second-largest economy over the longer run.

Goldman Sachs forecasts China’s gross domestic product will expand 4.6% in 2026. The bank expects AI-related exports to make a diminishing contribution to overall growth as the industry becomes larger and its expansion rate moderates. It also warned that investment’s share of the economy is likely to keep declining, adding to the challenge of maintaining headline GDP growth after the recent boost from technology-linked trade.