Experts at Goldman Sachs Group Inc. have revised their forecasts for China’s economic growth prospects in the current year and 2025.
The change in the mentioned prospects’ vision is because Beijing has unveiled a series of measures aimed at reviving the economy, including its upward dynamic. In this case, it also implies plans to increase public spending, announced last weekend.
Goldman Sachs experts predict that the gross domestic product (GDP) of the Asian country will grow by 4.9% in the current year. It is worth noting that the previous version of this forecast provided an increase in the corresponding indicator by 4.7%. The experts of the financial institution also revised their expectations regarding China’s economic growth next year. They predict that the Asian country’s GDP will increase by 4.7% in 2025. Before revising the vision of China’s economic growth prospects next year, Goldman Sachs experts expected that the mentioned indicator would rise by 4.3%. The new forecasts were published last Sunday, October 13.
Goldman Sachs experts including Hui Shan and Lisheng Wang wrote that the latest round of stimulus measures in China clearly indicates that policymakers have made a turn on cyclical policy management and increased their focus on the economy.
Economists and investors are currently assessing the potential consequences of the measures announced by Beijing last month. In this case, it implies a set of solutions aimed at revitalizing China’s economic system, which is currently the second largest in the world. Recently, the mentioned system has been facing significant difficulties that limit its growth potential. In this case, factors such as the crisis in the real estate market and weak consumer demand are the most sensitive in terms of the scale of the impact.
The Finance Ministry of the Asian country vowed to increase fiscal support last week. At the same time, in this case, measures to boost consumption are not meant.
Goldman Sachs experts also noted that the structural challenges faced by Beijing remain.
As we have reported earlier, World Bank Warns of Probable Slowdown in China’s Economic Growth.
