China’s forecast for economic growth in 2023 is looking more optimistic, according to analysts from Morgan Stanley, who are predicting an earlier and more aggressive rebound in activity now. The analysts are predicting China’s Gross Domestic Product will grow 5.4% next year, which is an increase from their previous prediction of 5%.

The analysts said, “We had previously expected a rebound in activity to materialize from late 2Q23. Now we are projecting mobility to improve from early March,” and that “faster and sharper rise in mobility” to exert a positive effect on the economy beginning in the second quarter.

They also pointed out the government is now “taking concerted action to lift growth across all fronts.”

They added, “This is the first time since 2019 where domestic macro policies and Covid management are aligned in supporting a growth recovery, rather than acting as countervailing forces.”

CASS, China’s state-run think tank, separately issued its predictions on Tuesday, which said the Chinese economy would expand 5.1% next year.

According to a report in Bloomberg, top Chinese officials are currently considering setting an economic growth target for next year of around 5%. However the report points out the decision on an official growth target would then not be made public until the National People’s Congress convenes in March.