China’s economy faces growing uncertainty, said Fitch, one of the world’s leading rating agencies.
International rating agency Fitch downgraded its outlook on China’s credit rating to negative. Reuters reported this on Wednesday, April 10.
The agency downgraded its rating (following a similar move by Moody’s in December 2023, – ed..) as Beijing ramps up efforts to bolster the fragile recovery from the COVID-19 pandemic through fiscal and monetary support.
“Fitch’s outlook revision reflects a more challenging environment for China’s public finances, with the dual impact of slowing growth and rising debt,” said a senior economist at Natixis Asia-Pacific.
According to him, this does not mean that China will default in the near future.
Although the agency downgraded its outlook on the ratings from stable to negative, indicating that a downgrade is possible in the medium term, the agency affirmed China’s rating at A+.
Fitch forecasts that China’s economic growth will slow to 4.5% in 2024 from 5.2% last year, while the International Monetary Fund expects China’s GDP to grow by 4.6% this year.
We remind you that earlier the international rating agency Moody’s downgraded Israel’s credit rating for the first time in history.
Source: korrespondent
I’m Liza Grey, an experienced news writer and author at the Buna Times. I specialize in writing about economic issues, with a focus on uncovering stories that have a positive impact on society. With over seven years of experience in the news industry, I am highly knowledgeable about current events and the ways in which they affect our daily lives.