China stimulus plan leads Goldman to raise GDP forecast

It expects economy to grow 4.9% in 2024; lifts forecast for 2025 to 4.7%, up from 4.3%

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BEIJING - Goldman Sachs Group upgraded its forecasts for China's economic growth in 2024 and 2025 after Beijing unveiled a series of measures to shore up growth, including plans for greater public spending announced over the weekend.

The bank expects China's gross domestic product (GDP) to expand 4.9 per cent in 2024, up from 4.7 per cent previously. It also lifted its growth prediction for 2025 to 4.7 per cent from 4.3 per cent, according to a report dated Oct 13.

“The latest round of China stimulus clearly indicates that policymakers have made a turn on cyclical policy management and increased their focus on the economy,” Goldman economists, including chief China economist Hui Shan, wrote.