ANALYSTS have raised their 2018 growth forecasts for China’s economy, a surprising result given an escalating trade war with the United States, as they see a deleveraging drive and pollution crackdown having less of an impact than initially expected.

A Reuters poll of 76 economists now predict gross domestic product (GDP) growth in the world’s second-biggest economy at 6.6 percent this year, compared with an April pick for 6.5 percent expansion, with the latest forecasts ranging from 6.3 percent to 6.9 percent.

That would be a slowdown from 6.9 percent last year but easily within the government’s target of around 6.5 percent.

Since the last poll, China reported better-than-expected first quarter growth of 6.8 percent, as the property market held up despite restrictions on home purchases in many cities and consumer demand was strong.

Economists expect broad momentum to ease, albeit at a gradual pace, over the rest of the year, with second quarter growth forecast at 6.7 percent, third quarter at 6.6 percent and 6.5 percent in the fourth quarter.

While the brighter full-year outlook came despite an escalating trade war with the United States, most forecasts were collected before the United States raised the stakes Tuesday by announcing plans for 10 percent tariffs on an extra US$200 billion worth of Chinese imports. (SD-Agencies)