Goldman Sachs Group Inc raised its outlook for China's economic growth this year as the country's factory activities have accelerated more quickly than expected.

In a recent report, economists from Goldman Sachs, led by Shan Hui, the group's chief China economist, said that Chinese economy is likely to have expanded at an annualized pace of 7.5 percent in the first quarter compared to the prior three months, surpassing their previous estimates of 5.6 percent.

As a result, the group has raised its forecast for China's economic growth to 5 percent in 2024, aligning with the target set by the Chinese government, rather than the 4.8 percent previously predicted.

According to the team's calculations, about two-thirds of the 1.7 percentage point improvement in China's official manufacturing purchasing managers' index in March is related to seasonal factors, while the remaining one-third reflects an improvement in manufacturing growth momentum on a month-on-month basis. Other data also point to outstanding performance in the manufacturing sector.