(Bloomberg) -- JPMorgan Chase & Co. has lifted its 2018 economic growth forecast for China to 6.7 percent from the consensus 6.5 percent on the back of improving global demand. The outlook puts the U.S. bank among the more bullish forecasts for the world's No. 2 economy.
"While the domestic policy outlook going into 2018 has been broadly tracking our expectations, the global growth outlook has turned more upbeat lately," economists led by Hong Kong-based Haibin Zhu wrote in a note.
The upgrade comes amid evidence of accelerating demand for Chinese exports. An official factory gauge showed new manufacturing export orders climbed to a six-month high of 51.9 in December from 50.8 the previous month.
Still, heightened trade tensions between the U.S. and China remain a worry.
"While an all-out trade war is unlikely, we think the risk of miscalculation by either side resulting in an escalatory and broadened trade dispute is significant," JPMorgan's economists wrote.
To contact the reporter on this story: Enda Curran in Hong Kong at ecurran8@bloomberg.net.
To contact the editors responsible for this story: Jeffrey Black at jblack25@bloomberg.net, Jeanette Rodrigues
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