Goldman Sachs sees Chinese GDP growth picking up in second half of 2023

According to Goldman Sachs Group Inc., China's gross domestic product growth is likely to accelerate in the second half of 2023. China's GDP is expected to pick up after the economy weathers a negative impact, exiting the Covid Zero strategy in the spring.

In a note, economists led by Hui Shan wrote that quarterly growth could accelerate to 10% between June and September from just 2% in the second quarter. Such a sharp acceleration in GDP growth is expected by economists if the country begins to open its borders in April.

Fiscal policy should remain loose in the first half of 2023, normalizing in the following six months, economists said. Consumption and services will recover along with the normalization of fiscal policy. Economists say that the growth boost from the opening of the Chinese economy will continue in the first half of 2024. According to their forecast, annual GDP growth in 2024 will accelerate to 5.3%.