Goldman Sachs says it has raised its economic growth forecast for China.
According to Bloomberg News on the 17th, local time, Goldman Sachs raised China GDP growth forecast from 5.2% to 5.5%, reflecting better-than-expected economic indicators and the pace of daily recovery.
Goldman Sachs pointed out that economic indicators showed strong performance at the end of last year, with the China economy growing 2.9% in the fourth quarter of last year, well exceeding market expectations of 1.6%.
In addition, retail sales, industrial production, and unemployment in December last year were all better than expected by experts, explaining that the economic indicators were surprisingly good considering the spread of COVID-19 and labor shortages.
Citigroup also said last month that China’s retail sales and labor market resilience are noteworthy, adding that China’s economy could recover quickly as daily recovery takes place faster than expected.
Standard & Poor’s (S&P) Global Market Intelligence pointed out a series of cases of demand recovery, predicting a rapid economic recovery from the second quarter of this year as the Chinese government puts economic growth ahead of COVID-19 quarantine.
JPMorgan Chase said it expects China’s economic recovery to continue this year as a result of daily recovery and policy stimulus, and analyzed that the service and consumer goods industries may benefit first from the recovery in demand.
Meanwhile today, the Chinese stock market, which is about to close, is also on the rise. Hong Kong’s Hang Seng Index is rising 0.18% and China’s Shanghai Composite Index is rising 0.12%, respectively.
The Chinese stock market is showing strong performance despite the worst growth rate in the last half century. This is attributed to expectations that China’s economy will rebound sharply due to strong growth in the fourth quarter, although the overall growth rate was bad last year.