Top Chinese officials were busy showing off warships and submarines to celebrate the 60-year anniversary of their navy today, but they have something to boast about when it comes to their economy too.  It is, after all,  the world's third largest.

China's economy grew 6.1 percent in the first quarter, lower than expected but still far outpacing its G20 peers, many of which are stuck in recession.

Goldman Sachs has just upgraded its forecast for China, expecting 8.3% growth in 2009 (up from 6%) and 10.9% (from 9%).

"The stimulus is clearly impacting growth more substantially so far this year, but domestic demand has also responded earlier and more forcefully than we originally expected," the U.S. bank notes.

"We expect both dynamics to carry into next year, with policymakers signalling more clearly that they are likely to keep policy aggressively supportive for some time and we expect private investment to pick up from government spending as we head towards next year."