Goldman Sachs upgrades prediction for China’s economic growth for 2024, 2025
Date
10/14/2024 4:27:58 AM
(MENAFN) Goldman Sachs Group Inc., a prominent US investment bank, has upgraded its projections for China’s economic growth for both this year and the next. This adjustment follows Beijing's recent announcement of several initiatives aimed at stimulating growth, including plans to increase public spending, which were revealed earlier this week.
The bank now forecasts that China, the world’s second-largest economy, will grow by 4.9 percent in 2024, an increase from its previous estimate of 4.7 percent. Additionally, Goldman Sachs has raised its growth prediction for 2025 from 4.3 percent to 4.7 percent of GDP, indicating a more optimistic outlook for the Chinese economy.
According to a report by Bloomberg News Agency, analysts from Goldman Sachs, including Hui Shan and Lisheng Wang, noted that the recent stimulus measures reflect a shift in Chinese policymakers’ approach toward cyclical policy management and a heightened emphasis on economic revitalization. This shift is seen as crucial as the country navigates challenges related to declining consumer confidence and ongoing deflationary pressures.
In a press briefing held last Saturday, China’s Finance Ministry announced plans for substantial financial support to bolster economic stimulus programs. However, the ministry did not disclose specific steps to enhance consumption, which some analysts believe are essential for overcoming the current recessionary environment.
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