China’s economy to grow 5% this year, Citi says

Citigroup boosted its China GDP forecast to 5% this year, as encouraging data contributes to growing confidence in the country’s ability to meet its official government objective.

According to the analysts, retail sales and industrial output may recover, and the country’s export contraction may also lessen after official manufacturing surveys expanded for the first time in six months.

In a report released on Wednesday, Citi analysts led by Xiangrong Yu stated that “the cyclical bottom is here, with all eyes on whether organic demand will rise up amid building policy impetus.”

Citi highlights China’s improving manufacturing activity and predicts that retail sales will grow while industrial production will remain stable despite a larger base.

Citigroup Bank’s decision to raise China’s growth forecast to 5% this year came after the consensus of economists.

“Many economists continue to regard real estate as a key impediment to growth,” according to “Bloomberg.”