The US financial rating agency Moody's on Wednesday raised its forecast for China's GDP (Gross Domestic Product) growth from 4% to 5% in 2023 and 2024..

In an update of the growth forecasts for the world's main economies, the rating agency said that the Chinese government's "decision to fully relax the preventive measures against Covid-19 will naturally boost economic activity".

The world's second largest economy grew by 3% last year, the second lowest level in at least four decades, reflecting the impact of the 'zero Covid' policy and the liquidity crisis in the real estate sector.

The Chinese authorities have yet to announce this year's economic growth target. This is expected to be done this Sunday by the outgoing prime minister, Li Keqiang, at the opening of the annual session of the National People's Assembly, the country's highest legislative body.

Moody's, quoted by Lusa, also predicted that Beijing will set an inflation target of "around 3%" and that the consumer price index, which rose 2% in 2022, according to official data, will rise by 2.3% this year and 1.9% in 2024.

Despite the positive impact of the country's reopening, the agency continues to forecast a slowdown in the growth of the G-20 economies, from 2.7% in 2022 to 2% this year and 2.4% in 2024.