Goldman Sachs Lifts China’s Growth Forecast for 2023 to 6%

Goldman Sachs revised up its forecast for China’s economic growth this year to 6% from 5.5%, the investment bank said in a note on Wednesday, citing the country’s rapid reopening.

Goldman Sachs said in a research note that the revised forecast was driven by a strong rebound in sectors vulnerable to the COVID-19 pandemic and generally improved activity data in the first two months of this year.

Although China’s economy showed signs of improvement in January and February, a spokesman for the Chinese statistics bureau said at a briefing on Wednesday that it would take time to restore business and individual financial stability following the pandemic.

China has set a moderate annual growth target of roughly 5% for this year, after falling far short of its target for 2022.

The real estate market has made fresh gains in its recovery from a prolonged recession, and Goldman Sachs cites this as one reason for its updated outlook.