BofA Global Research on Friday raised its forecast for China’s 2023 gross domestic product (GDP) growth to 6.3 percent from 5.5 percent, saying it expects the strong credit impulse in the first quarter to lift cyclical growth momentum in the coming quarters.
The brokerage added the upbeat Q1 GDP data released this week confirms the strong rebound driven by private consumption since reopening.
State media Beijing Daily on Thursday reported China’s capital Beijing’s GDP expanded 3.1 percent in Q1 from a year earlier.
“In our view, we are seeing the beginning of a new credit cycle, which will fuel investment growth more than consumption and lift cyclical momentum in China,” BofA economists said in a note.
Earlier this week J.P.Morgan, Citigroup, UBS and Morgan Stanley also raised their full year GDP growth forecast for China to 6.4 percent, 6.1 percent, 5.7 percent and 5.7 percent respectively.
J.P.Morgan, Citi upgrade China’s 2023 full-year GDP growth forecast