The lowering of its outlook does not automatically mean the ratings agency will downgrade China’s creditworthiness, but it increases the chances.
Analysts say the property downturn is likely to drag on, hobbling China’s growth prospects for years.
Slower growth, weaker demographicsMoody’s expects China’s annual economic growth rate to slow to 4% in both 2024 and 2025, and average 3.8% a year from 2026 to 2030.
“The affirmation of the A1 rating reflects China’s financial and institutional resources to manage the transition in an orderly fashion,” the agency said.
“Its economy’s vast size and robust, albeit slowing, potential growth rate, support its high shock-absorption capacity.”China’s Finance Ministry said Tuesday it was “disappointed” with Moody’s decision to downgrade the country’s credit outlook.
Persons:
Hong Kong / New Delhi CNN — Moody’s, China’s, Moody’s, “, Hong, Seng, Anna Cooban
Organizations:
Hong Kong / New Delhi CNN, China’s Finance, CSI
Locations:
China, Hong Kong / New Delhi, China’s, “, Shanghai, Shenzhen