(Reuters) -Analysts at J.P.Morgan on Thursday raised their 2023 growth forecast for China's gross domestic product by 30 basis points to 4.3% as the world's second largest economy reopens from tight COVID restrictions.
The brokerage also cut its 2022 economic growth outlook for the country to 2.8% from 2.9% previously.
"The most important development in the past month is earlier reopening with a faster pace. Our analysis has taken into account a transitional pain period before the economy enters a strong recovery," JPM said.
Beijing last Wednesday began dismantling its tough "zero-COVID" controls, dropping testing requirements and easing quarantine rules that had caused mental stress for tens of millions and left its economy battered.
Last month, Goldman Sachs (NYSE:GS) hiked its estimate for China's economic growth to 4.5% for next year, citing the exit from zero-COVID policy.
China is battling coronavirus outbreaks in numerous major cities, including the capital Beijing, while it takes steps to try to ease the burden of its strict zero-COVID policy.
In the near term, China is likely to face disinflation pressure when domestic demand remains soft before the economy picks up pace, JPM said.