Wall Street brokers raised their outlook for China’s annual economic growth, saying that its economic indicators and the recent support measures helped boost its economic momentum.
Citigroup has raised its growth forecast for China to 5% in 2023 from its earlier revised forecast for 4.7%, citing promising data that helps build consensus on the ability to achieve its official government target.
Meanwhile, JPMorgan also lifted China’s 2023 GDP growth forecast to 5% from 4.8% and also raised its 2024 GDP forecast to 4.4% from 4.2%.
The most recent poll from economists compiled by Bloomberg showed a median forecast for 5% economic growth this year, which is in line with the official goal of Beijing. Several economists noted that the slowdown in China’s economy has hit a bottom, while expecting retail sales to improve and industrial production to maintain following a rebound in factory activity.
JP Morgan added that further policy measures from the Chinese government could be announced such as a support on product-specific consumption and further relaxation of administrative controls in the housing market.
