A slew of leading financial institutions expect Chinese GDP growth to accelerate in 2018 on the back of robust consumption and rising capital investment in the hi-tech manufacturing sector.
While a recent Bloomberg survey of economists see Chinese GDP growth easing to 6.5% this year from 6.8% in 2017, JPMorgan Chase & Co. analysts have just raised their growth forecast for 2018 to 6.7% from 6.5%, on the back of an “upbeat external outlook.”
JPMorgan isn’t alone, with China International Capital Corp and Shanghai Securities Co. also foreseeing a second consecutive year of accelerating growth.
“Growth could accelerate in 2018, defying market expectations of gradual cooling,” said Frederic Neumann, co-head of Asian economics research at HSBC Holdings Plc in Hong Kong to Bloomberg.
“More funds are being mobilised to advance the country’s advanced manufacturing capability. This could provide a lift to growth as capital expenditure soars.”