Morgan Stanley raised its forecast for China’s economic growth next year, noting that a rapid restart after the “zero Covid” policy and continued steps toward policy easing will support the economy.

And according to Bloomberg, the bank’s economists wrote in a note on Tuesday that they expect China’s GDP to grow 5.4% in 2023 instead of 5% previously, and mobility and economic activity to rebound by the end of the first quarter to levels not recorded since June and July of this year.

And US bank economists expect the continuation of the recovery to levels higher than before the epidemic during the rest of 2023.

They explained that although the growth of the economy may suffer some pains in the near term at the beginning of next year with the epidemic cases reaching their peak and disruption to production and consumption, the risks to the supply chain may be manageable compared to the damage caused by virus-related closures.