Morgan Stanley upgrades China's 2025 GDP growth forecast

Morgan Stanley has raised its forecast for China's economic growth in 2025. The bank cites strong activity in the first part of the year, despite the impact of new US tariffs. Robin Xing, Morgan Stanley's chief economist for China, highlighted a strong start to the year and increased capital expenditures as reasons for the upgrade. The bank noted that even after the long Lunar New Year holiday, economic data remained robust. Additionally, HSBC also revised its growth forecast, increasing it by 0.3 percentage points to 4.8 percent. The bank attributed this improvement to government support for economic growth and a stronger focus on boosting domestic consumption. Both banks emphasized the importance of new policies to build confidence in the private sector. They believe investments in technology and innovation will further enhance economic growth in China.