<p>Citigroup predicts that both real and nominal growth in China will rebound from the bottom over the next two years, with 2025 potentially being a turning point. The downturn in the real estate market has reached its final stage and will absorb the greatest pain from tariff impacts. It is expected that the negative value of PPI may narrow to around zero in the second half of this year and turn positive in 2026. The contribution of AI+ to China's economic increment is estimated to be around 500 billion RMB in 2025, equivalent to 0.4% of GDP</p>

<p>Citigroup has raised its forecast for China's GDP growth in the next two years, predicting that both real and nominal growth will bottom out and rebound. It is expected that 2025 will be a turning point, with the sluggish real estate market nearing its end and absorbing the impact of tariff shocks. It is anticipated that the negative Producer Price Index (PPI) will narrow to zero in the second half of this year and turn positive in 2026. Additionally, it is expected that AI+ will contribute approximately 500 billion yuan to China's economic increment in 2025, accounting for about 0.4% of GDP</p>

Citigroup turns optimistic about China, raising GDP growth forecasts for this year and next