Morgan Stanley raises 2009 China GDP forecast to 7%

Apr. 23, 2009 (China Knowledge) - Morgan Stanley raised its forecast for China's GDP growth this year to 7% from 5.5% to take into account the effects of the government's policy in response to the economic downturn, which have restored confidence and prevented slowdown in consumption and investment in the first quarter of 2009.
 
Morgan Stanley said the adjusted prediction reflects increases in private consumption and investment that offset the weak exports.

China's GDP growth rate of 6.1% in the first quarter is stronger than expected due to the economic rebound in March. Morgan Stanley deemed the inflation pressure small and said there is no need for China to enact further stimulus policies.

Goldman Sachs yesterday raised its forecast for China's GDP growth this year to 8.3% from 6.0%, while UBS raised its forecast for gross domestic product growth in 2009 to a range of 7% to 7.5% from 6.5%.