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Morgan Stanley said yesterday that it upgraded its 2007 China GDP growth forecast to 10.5 percent from 9.3 percent and CPI inflation forecast to 2.9 percent from 2.5 percent on stronger-than-expected developments in the first five months of the year. The firm revises its 2008 forecasts accordingly. The forecasts suggest that China will likely extend its track record of a double-digit GDP growth since 2003 into the fifth and even sixth year.