Goldman Sachs has raised its gross domestic product (GDP) forecast for China to 7.6 percent from 7.4 percent for 2013, even as it slashed the growth targets for India and other Southeast Asia nations.
The move comes as recent economic data out of China, including the latest purchasing managers indexes (PMI) for August, have pointed to stabilization in the world's second largest economy. China's official PMI released over the weekend showed factory activity rising to a 16-month high of 51 in August, up from 50.3 in July.
(Read more: China PMIs impress but analysts warn of risks ahead)
"Our China economists revised up their GDP (forecast) as growth appears to have accelerated in the third quarter with signs of a pickup in external demand and supportive domestic policies," the bank said in a note, adding that its estimate for 7.7 percent growth in 2014 remains unchanged.