JP Morgan Raises Growth Forecast for China’s Economy
In the first quarter of 2024, economic growth was 5.3% year-on-year
China’s GDP is expected to grow in 2024 more than projected previously. Zhu Haibin, chief China economist at J.P. Morgan provided updated economic estimates during a speech at the J.P. Morgan Global China Summit in Shanghai. China’s economy is projected to grow by 5.2% in 2024, up from an earlier estimate of 4.9%.
“The country’s steady 5.3% year-on-year economic growth in the first quarter of 2024 exceeded market expectations and signaled a solid start to the year,” Zhu said, according to Xinhua report. Specifically, there has been “annual growth in industrial value added that has exceeded the country’s overall growth, diversification of products and export destinations, and the emergence of new technologies and industries that have been driving economic growth.”
These estimates are more optimistic than those reported in April by Morgan Stanley, which spoke of growth of 4.2% and 4.8%.
Zhu also talked about the local currency, explaining that he expects a substantially stable yuan exchange rate through 2024, “even though it faces pressure from short-term depreciation against the US dollar.”