FILE PHOTO: A man sits on an overpass near a construction site of a subway station in Beijing, China April 18, 2023. REUTERS/Tingshu Wang/File Photo
(Reuters) – BofA Global Research on Friday raised its forecast for China’s 2023 gross domestic product (GDP) growth to 6.3% from 5.5%, 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% 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 (NYSE:C), UBS and Morgan Stanley (NYSE:MS) also raised their full year GDP growth forecast for China to 6.4%, 6.1%, 5.7% and 5.7% respectively.