By In the wake of the recent 90-day tariff reduction agreement between the United States and China, several major investment banks have revised their growth forecasts for China’s economy in 2025. The unexpected trade deal has injected a dose of optimism into global markets and signaled a potential turnaround for China’s economic trajectory.
JPMorgan, among others, has increased its projection for China’s GDP growth from 4.1% to 4.8%, citing the positive impact of reduced trade barriers and the potential for increased exports. The bank noted that the magnitude of the tariff reductions exceeded expectations and could lead to a resurgence in trade activity between the two nations.
Analysts believe that the temporary easing of tariffs will not only bolster China’s export sector but also encourage domestic investment and consumption. The agreement is seen as a critical step towards stabilizing the global economy and reducing the risk of a prolonged trade conflict.
While the 90-day period provides a window for further negotiations, the immediate effect has been a boost in investor confidence and a more favorable outlook for China’s economic performance in the coming year.