Fitch Says China’s Outlook Is Neutral, Sees Growing Debt Risks

(Bloomberg) — Fitch Ratings said it has a “neutral” outlook on China’s economy while warning of persistent risks including property sector woes and 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, “Greater China Outlook 2024.” While a greater use 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.