Leading global banks have raised their forecasts for China's economic outlook in 2025, citing the continued upward trajectory the world's second largest economy has maintained since the start of the year.
International investment bank Morgan Stanley recently increased its GDP growth forecast for China by 0.5 percentage points, citing the stronger-than-expected performance in the first quarter and robust investment momentum in emerging industries.
"China's economy had a good start in the first quarter. Companies are showing a keener interest than last year in investing in sci-tech innovation sectors such as advanced manufacturing, new energy, smart driving, and AI applications in robotics, with investment levels expected to continue rising," said Robin Xing, chief China economist at Morgan Stanley.
Similarly, other major foreign financial institutions, including JPMorgan Chase, HSBC, Goldman Sachs, and Nomura, have also adjusted their forecasts upwards, reflecting growing optimism about China's economic outlook.
Research reports highlight that China's economy has demonstrated remarkable resilience and potential across various sectors, thanks to policy support, market dynamism, and ongoing industrial transformation.
"Policies, such as expanding the scope of consumer goods trade-in programs and increasing basic pension benefits and medical subsidies for urban and rural residents, are expected to play a key role in boosting consumer confidence," said Ding Shuang, chief economist for Greater China and North Asia at Standard Chartered.
Goldman Sachs predicts that by 2030, artificial intelligence could contribute 0.2 to 0.3 percentage points annually to China's GDP growth. Meanwhile, HSBC reports that favorable policies in China are giving strong support to technological innovation and significantly boosting corporate confidence, which will contribute to more sustainable and comprehensive economic growth.
The foreign financial institutions generally agree that continued macroeconomic policy support will play a positive role in advancing China's economy expansion.
Global banks raise China's growth forecasts for 2025
The Iranian government is focusing on public concerns and maintaining stable supplies of essential goods amid recent protests, Iranian President Masoud Pezeshkian said in a televised interview on Sunday.
In the city of Karaj, northwest of the capital Tehran, daily life has largely continued as normal. A video filmed by a local resident on Sunday shows food stores open and grocery shelves fully stocked.
"This is the block near my home, and there are some food stores here. Daily life continues here. Last night we did not see many protests in Karaj. Right now the city is very safe. This is a grocery store close to my home. All the food is available; nothing is in shortage. Here are noodles and different types of beans. Here are dairy products, cheese, and yogurt. I also checked other grocery stores and didn't see any shortages. Everything is available," said local resident Ali Reza.
Iranian officials have described recent disturbances as acts orchestrated by the "enemy," including some carried out by well-trained and armed "terrorists." The incidents have caused casualties among security personnel and civilians, as well as property damage.
The Secretary of Iran's Supreme National Security Council Ali Larijani has directed authorities to severely punish the "terrorists."
Meanwhile, Iran's police chief Ahmad-Reza Radan said on Sunday that the police had raised alert levels and arrested several leaders of the troublemakers during the operations on Saturday.
President Pezeshkian noted in the interview that the normal demands of the Iranian people are reasonable and justified, but they must realize that triggering riots and carrying out terrorist acts are the enemy's attempts to undermine the country. He urged the public to remain vigilant.
Also on Sunday, Iranian Parliament Speaker Mohammad Baqer Qalibaf warned that Tehran would regard U.S. and Israeli bases and facilities in the Middle East as "legitimate targets" if Washington takes military action against Iran. His remarks followed media reports saying U.S. President Donald Trump is "seriously considering authorizing a strike" against Iran.
Iranian state media reported that at least 109 members of Iran's security forces have been killed in clashes since the protests began 14 days ago. Meanwhile, human rights groups based outside the country said the number of protesters killed has exceeded 200, though the figure could not be independently verified.
The protests initially erupted over a sharp depreciation of the rial and sweeping subsidy reforms. Iranian authorities have blamed the unrest on foreign-linked agents and sanctions imposed by the United States.
Iranian president says government focusing on ensuring supplies amid protests
