China expresses disappointment as Moody's lowers economic forecast
Date
12/6/2023 2:07:44 AM
(MENAFN) On Tuesday, China conveyed its disappointment following Moody's decision to lower its forecast for the world's second-largest economy.
The country expressed dissatisfaction with the revised outlook provided by Moody's for its economic trajectory.
The nation’s Finance Ministry stated that the Chinese Economy was likely to "maintain a positive trend in the fourth quarter, and China will remain an important engine for stable growth of the world economy."
Moody's has recently adjusted the outlook for China's sovereign bonds, shifting it from stable to negative while maintaining a long-term A1 rating for the nation.
Nevertheless, the ministry further declared: "Moody's concerns about China's economic growth prospects, fiscal sustainability and other aspects are unnecessary."
The grading agency cited concerns about potential economic risks as the basis for its decision to revise the outlook for China's sovereign bonds from stable to negative while maintaining a long-term A1 rating.
One of the key apprehensions raised by Moody's is related to China's dependence on fiscal stimulus as a means of providing support to local governments, which, according to the agency, poses potential vulnerabilities.
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