New York, Monday, October 14, 2024 – Goldman Sachs has revised its forecast for China’s gross domestic product (GDP) growth in 2024, raising it to 4.9% from the previous estimate of 4.7%.
The change comes in response to the Chinese government’s recent wave of stimulus measures aimed at boosting the country’s economic performance.
In a note to clients, Goldman Sachs highlighted that these stimulus efforts mark a shift in China’s cyclical policy management, with an increased focus on stabilizing and enhancing the economy.
The financial giant’s economists believe these moves are aimed at addressing challenges posed by a slowdown in the property sector and weaker consumer spending.
China’s growth prospects have been under close scrutiny, especially given global concerns over the country’s economic slowdown. Several economic indicators have pointed to ongoing struggles in key sectors, making the government’s intervention timely. Goldman Sachs’ latest revision reflects the potential positive impact of these measures on the broader economy.
China has been grappling with slower growth rates since 2023, largely due to a weakening real estate sector, reduced consumer confidence, and geopolitical tensions.
The government’s recent stimulus measures are designed to counter these issues, and Goldman Sachs’ updated forecast is one of the first major signals that these policies may be effective in driving recovery.
