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A surprise trade truce between the U.S. and China has led to revised upward growth forecasts. The 90-day agreement to temporarily reduce tariffs from 125% to 10% has prompted institutions like UBS, Morgan Stanley, ANZ Bank, and Natixis to increase their China GDP growth predictions for 2025 and the coming quarters. The de-escalation is expected to minimize economic shock and stimulate exports, potentially leading to higher-than-expected GDP figures.

Prepared by Christopher Adams and reviewed by editorial team.