The economic pulse of the Chinese mainland is surging ahead 🚀. In the first half of 2025, the GDP expanded by 5.3%, surpassing expectations and prompting major international banks to upgrade their full-year growth forecasts.
Key indicators showcased impressive gains: industrial output rose by 6.4%, high-tech manufacturing surged 9.5%, retail sales accelerated by 5%, and exports grew by 7.2%. These robust numbers reflect a resilient economic performance that is capturing global attention.
Following the release of these figures, institutions such as Morgan Stanley, UBS, Goldman Sachs, and ANZ revised their projections upward. Citing export resilience, proactive fiscal policies, and strong global demand for goods from the Chinese mainland, these banks now see a brighter forecast for 2025.
Market sentiment is also on the rise. Citigroup recently upgraded consumer stocks in the Chinese mainland from "neutral" to "overweight", signaling growing investor confidence. Invesco's Asia ex-Japan CEO Martin Franc remarked, "A consensus is growing that the opportunity set around the Chinese mainland is unique and compelling, especially relating to the evolving technology ecosystem. Investors are becoming increasingly convinced of its innovative leadership and don't want to be left behind."
While optimism prevails, some banks caution that slowing export growth in the coming months could temper the momentum. Additional policy support is expected, contingent upon upcoming economic data.
As 2025 progresses, all eyes will remain on how the Chinese mainland navigates emerging challenges while continuing its impressive growth trajectory. Stay tuned for more updates on this dynamic economic story!
Reference(s):
International banks raise China GDP forecasts on strong data
cgtn.com
