Citi upgrades China forecast, says economy has bottomed out

The news: Citigroup has lifted its growth forecast for China and says the cyclical bottom has arrived for the world's second-largest economy, Bloomberg reports.

The numbers: Citi bumped its forecast for China's GDP from 4.7% to 5%. The lower figure had placed Citi among the more bearish of investment banks on China.

The context: Analysts will be closely watching retail figures from the National Day and mid-autumn holiday period (from 29 September until tomorrow) for signs of a improved consumer confidence. China's post-COVID economic recovery has been marred by sluggish domestic demand and a liquidity crisis in its property sector, which accounts for roughly a quarter of the national economy.

What they said: "The cyclical bottom is here, with all eyes on whether organic demand will pick up amid gathering policy momentum,” Citi economists led by by Yu Xiangrong wrote.