HSBC boosts China's 2025 GDP growth forecast to 4.8%

HSBC has increased its forecast for China's economic growth in 2025 to 4.8%, up from a previous estimate of 4.5%. For 2026, the bank projects a growth rate of 4.5%, slightly higher than its earlier forecast of 4.4%. This adjustment follows a recent announcement from the Chinese government regarding a consumption plan aimed at improving household conditions. However, details of the plan are still unclear and its impact may take time to materialize. The intention appears to be to enhance consumer confidence and spending. This effort ties into China's broader goal of "common prosperity," suggesting that the government is focused on addressing social issues. Officials are committed to achieving a GDP growth target of around 5% as stated in the latest National People's Congress, indicating that they will likely find ways to reach this goal, at least on paper.