HSBC on Monday raised China's 2023 economic growth forecast to 5.2% from 4.9%, citing a pick up in consumption that is lifting overall domestic economic activity.
For next year, HSBC economists now model the country's economy to grow at 4.9%, compared with the 4.6% growth expected previously.
"Economic activity has been gathering steam in recent months as a pick-up in consumption has boosted industrial production. We expect this trend to continue," said Jing Liu, HSBC's China chief economist.
Liu expects another 50 basis points (bps) of reserve requirement ratio cuts this year, followed by 50 bps in 2024 to lift credit demand and provide liquidity support. (Reporting by Roshan Abraham in Bengaluru; Editing by Shweta Agarwal)