• Goldman Sachs Group Inc. and Morgan Stanley raised their outlook for China’s economic growth this year as factory activity and exports accelerate more than expected.
• China’s economy likely expanded at a 7.5% annualized pace in the first quarter from the prior three months, Goldman economists led by Hui Shan said in a note Wednesday — higher than their 5.6% prior estimate. The bank now sees 2024 growth forecast at 5%, in-line with Chinese policymakers’ target, versus 4.8% previously.
• Morgan Stanley also lifted its 2024 growth forecast, to 4.8% from 4.2% previously, citing better-than-expected export growth from resilient US demand and robust export volume. Beijing’s increased focus on supply-chain upgrade is also expected to lead to stronger capital expenditure in the manufacturing sector, according to a report dated Wednesday.