Analysts hike forecasts for China’s economic growth
Goldman sees 8.3% growth in China this year, Morgan Stanley expects 7%
A string of investment banks, including Goldman Sachs and Morgan Stanley, have recently raised their forecasts for China’s growth this year, citing the aggressive moves by the Chinese government to stimulate the economy.
Economists at Morgan Stanley upgraded on Thursday their forecast for China’s 2009 gross domestic product growth rate to 7.0% from 5.5%.
The revision is “based on much stronger-than-expected policy responses that have boosted confidence and thus effectively prevented a potentially more severe slowdown in private consumption and investment in the first quarter, boding well for a sooner and stronger recovery in headline GDP growth,” wrote Qing Wang and other Morgan Stanley economists in a note to clients on Thursday.
…more…