Fitch affirms China A+ rating but lowers its outlook to negative

Fitch revises outlook on China to negative; affirms at ‘A+’

• Outlook revision
  reflects increasing risks to China’s public finance outlook
• Forecast general
  government deficit in China to rise to 7.1% of gdp in 2024
• Believes that fiscal
  policy is increasingly likely to play an important role in supporting
  growth in coming years
• 2024 deficit will be
  highest since 8.6% of GDP deficit in 2020
• The 2024 deficit
  will be the highest since the 8.6% of GDP deficit in 2020
• Forecasts GDP growth
  to moderate to 4.5% in 2024, from 5.2% in 2023
• Do not forecast a
  prolonged period of deflation, with inflation of 0.7% by end-2024 and
  1.3% by end-2025

This article was written by Eamonn Sheridan at www.forexlive.com.