Fitch Says China’s Outlook Is Neutral, Sees Growing Debt Risks
- The ratings agency comments on China’s 2024 economic outlook
- Fitch in August affirmed a stable outlook for China sovereign
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Fitch Ratings said it has a “neutral” outlook on China’s economy while flagging persistent risks including property sector woes, forecasting a slowdown in growth next year.
China’s economic growth will moderate to 4.6% next year from 5.3% in 2023, the ratings agency said in a Wednesday report titled “Greater China Outlook 2024.” While a greater usage of fiscal policy will limit downside risks, Fitch noted such supports may keep fiscal deficits wide at a time when the country’s fiscal metrics have already eroded compared to peers with similar sovereign ratings.