Citi ups China’ GDP outlook

Citigroup Inc. has revised its growth forecast for China upward to 5% for the current year, reflecting growing optimism about China’s ability to reach its official government growth target.

The bank’s economists anticipate improvements in retail sales and industrial production, and they believe that the contraction in exports may also narrow. This positive outlook comes after official manufacturing surveys in China expanded for the first time in six months.

The economists at Citigroup note that they believe the cyclical bottom has been reached in China’s economic performance, and they are now closely watching to see if organic demand will pick up amid increasing policy support and momentum.

This revised forecast of 5% growth represents an upward revision from their previous projection of 4.7%, positioning Citigroup among the more optimistic investment banks regarding China’s economic prospects.