NEW YORK, Oct. 16, 2024 — Investment bank, Goldman Sachs (GS, Financial) China's GDP increase for the current year, has been revised from 4.7% to 4.9%. The change effectively captures the current Chinese government fiscal stimulus programs that are meant to significantly boost economic development.
Key aspects that continue driving the change are major initiatives likely to speed up late 2024 development, including project approvals and local government bond expenditure. Analysts have talked at great length over the pre-approval of major infrastructure projects by the National Development and Reform Commission along with a greater budgetary push with a greater emphasis on economic growth.
Nonetheless, Goldman Sachs skepticism over long-term structural problems including China's aging population, high debt levels, and worldwide supply chain adjustments remains. Moreover, it's important to note that the bank's projections for 2026 and beyond are expected to remain the same. Expected on October 18, China's Q3 GDP numbers will offer greater insight on the direction the economy is headed following a Q2 downturn.
