Citi increased full-year forecasts for China’s economy
After China reported a 4.6% growth in its gross domestic product on Tuesday, JPMorgan and Citi have increased their projections of the nation’s full-year economic output.
JPMorgan increased its 2023 forecast to 6.42% growth from an earlier forecast of 6,3%. It said the latest quarterly report showed further gains.
Citi also raised its forecast above consensus to 6.12% from its previous forecast of 5.73%, saying China’s economy is well on its way to a post-Covid improvement, led by consumption and services.
The firm added that stronger-than-expected growth in the first quarter indicated further upside.
Citi analysts cautioned that despite the fact that services outpaced growth driven by consumption in the first three months, they were cautious about their forecasts.
UBS also increased its forecast for the year to 5.42% from 5.72%, given a stronger-than-expected advance in the first months of 2023, driven by a brisk recovery in both consumption and property.
The focus is on the Politburo meeting
Citi said that the Politburo Meeting could help policymakers regain their confidence in the private sectors.
Citi also advised investors to keep a close eye on structural reform policies.
Morgan Stanley hinted that…
