JP Morgan and ANZ on Friday raised their 2023 economic growth forecast for China, after August economic numbers offered some signs of stabilization in the world’s second-largest economy, reports Reuters. Both raised their GDP forecast by 20 basis points each to 5% and 5.1% respectively, with JPM saying notable recovery in retail sales and rise in service activity were the biggest surprises.
China’s factory output and retail sales grew at a faster pace in August, but tumbling investment in the crisis-hit property sector threatens to undercut a flurry of support steps that are showing signs of stabilizing parts of its wobbly economy.
Haibin Zhu, economist at JPM, said that government growth-stabilization policies announced since mid-August have been incremental but extensive, and will likely seep into the real economy in the coming months.