Goldman Sachs said on Wednesday it raised its forecast for China’s Gross Domestic Product (GDP) growth this year to 6% from 5.5%.
The strong recovery in sectors sensitive to the COVID-19 pandemic and the general improvement in activity data in the first two months of the year support the improved outlook, Goldman Sachs said in its research note.
The Chinese economy showed a gradual, albeit uneven, recovery in January and February, but fu linghuia spokesman for the Bureau of Statistics, told a briefing on Wednesday that it would take time to repair business and personal balance sheets damaged during the pandemic.
China has set a modest annual growth target of around 5% for this year, after significantly missing its 2022 target.
Last year, the world’s second-biggest economy expanded by just 3%, the slowest pace in decades if 2020 is excluded, weighed down by tightening COVID policies, a sharp slump in the real estate sector and weak foreign demand.
Goldman Sachs he also cited improving activity in the property sector, which has made further progress in climbing out of a months-long slump, as another reason for his revised forecast.
The investment bank last raised its forecast for growth in January in Chinese GDP by 2023 to 5.5%, from a previous estimate of 5.2%.
Source: Reuters
Source: Gestion
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