The aerial view shows residential buildings under construction in Hangzhou, China on March 15, 2024.
Ratings agency Fitch revised its outlook on China's sovereign credit rating to negative on Tuesday, citing risks to public finances as the economy faced increasing uncertainty in its shift to new growth models.
Fitch forecast the general government deficit would rise to 7.1% of gross domestic product (GDP) in 2024 from 5.8% in 2023, the highest since a reading of 8.6% in 2020, when Beijing's strict Covid curbs weighed heavily on the world's No.
While it lowered its outlook, indicating a downgrade is possible over the medium term, the agency affirmed China's IDR rating at "A+."
Fitch forecast China's economic growth would slow to 4.5% in 2024 from 5.2% last year, in contrast to Citi and the International Monetary Fund, which both revised up their China forecasts.
Persons:
Fitch, China's
Organizations:
Citi, International Monetary Fund
Locations:
Hangzhou, China