2024-04-12 20:57:29
Fitch analysts downgraded the outlook for China’s long-term foreign currency credit rating from stable to negative. This is stated in a press release from an international agency, Day.Az reports with reference to Gazeta.ru.
“The outlook revision reflects China’s increasing fiscal risks as the country faces an increasingly uncertain economic outlook as it shifts from a property-led growth model to one the government views as more sustainable,” it said.
China’s economic growth this year, according to Fitch’s forecast, will slow to 4.5% from 5.2% a year earlier. The state budget deficit will increase to 7.1% of GDP, which will be the highest figure since 2022 (8.6%), when Beijing introduced strict anti-Covid restrictions in the country. For comparison: at the end of last year, the Chinese state budget deficit amounted to 5.8% of GDP, the average figure in 2015-2019 was 3.1%.
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