HONG KONG, (Reuters:) Goldman Sachs analysts (NYSE:) announced Wednesday that they had reduced their China 2022 GDP projection to 4% (from 4.5%) due to COVID-related economic damage in the second quarter.

They added that it was likely China’s economy will undershoot rather than exceed their targets.

The authors wrote, “Even though this lower growth projection embeds in the assumption COVID remains mostly under control going forward. Property market improvements from here and substantial policy offset by infrastructure spending in subsequent months.”

China’s factory, retail, and manufacturing activity dropped sharply in April because of large COVID-19 lockdowns. These locked downs restricted workers and consumers from their homes and disrupted supply chains.