Citi boost 2023 China growth forecast well above 5%: economy has hit its cyclical trough

<p>Citi has published a note from global chief economist Nathan Sheets. Its wide-ranging but I have pulled out comments on China (the full piece <a href="https://www.citigroup.com/global/insights/GlobalInsights/global-economy-resilience-in-the-face-of-growth-concerns" target="_blank" rel="nofollow">is here</a> if you are interested in more).</p><p>In brief:</p><ul><li>The forecast for China’s 2023 growth has been boosted from 4.7% to 5.3%</li><li>2024 forecast unchanged at 4.6%</li><li>notes early signs that the Chinese economy has reached a cyclical trough, with consumer spending looking like it’s climbing back and those consumers likely having ample savings to support a further cyclical bounce</li><li>actions taken by the People’s Bank of China have helped put a floor under the ailing property sector as well as providing more general support</li><li>

But … China’s deeper structural challenges, which begin with elevated indebtedness and the need to make household consumption a more central part of the growth process and extend to challenging demographics and geopolitical tensions with the United States</li></ul>

This article was written by Eamonn Sheridan at www.forexlive.com.