BEIJING, April 10 Reuters Goldman Sachs has raised its forecasts for China39;s yearonyear economic growth for the first quarter and the full year of 2024 due to the country39;s manufacturing strength, the investment bank said in a note on Wednesday.

It raised its forecast for China39;s yearonyear gross domestic product GDP growth this year to 5.0 from 4.8 in November last year, according to the note.

It also lifted the firstquarter GDP growth forecast for the world39;s secondbiggest economy to 5.0 from 4.5 prior, with previous official data beating expectations and the latest highfrequency data showing resilience.

Economic data over the JanuaryFebruary period and March manufacturing PMI surveys offered tentative relief to Chinese policymakers, after the economy failed to post strong recovery since reopening from COVID shutdowns.

Officials this year are putting their faith in New Productive Forces, a term coined by Chinese President Xi Jinping in September last year underscoring the need for economic development based on innovation in advanced sectors.

Consistent with the manufacturing strength, our inventory tracker shows a material inventory build in Q1, though it is less dramatic than the one a year ago during China39;s rapid reopening, the Goldman Sachs note said.

However, the investment bank said China39;s secondquarter economic growth is likely to soften because the inventory accumulation in JanuaryMarch will need to be digested and policymakers may step away…