this post was submitted on 05 Dec 2023
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World News

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Ratings agency Moody’s downgraded its outlook on China’s government credit ratings to negative from stable, expecting Beijing’s support and possible bailouts for distressed local governments and state-owned enterprises to diminish China’s fiscal, economic and institutional strength.

Moody’s though retained China’s “A1” long-term rating on the country’s sovereign bonds, while expecting China annual GDP growth to slow to 4% in 2024 and 2025 and average 3.8% from 2026 to 2030.

Structural factors including weak demographics will drive a decline to 3.5% by 2030, it said.

The move underscores concerns over rising debt levels and the impact on broader growth in the world’s second-largest economy as Beijing resorts to fiscal stimulus to support local governments and contain the spiraling debt crisis among the country’s property developers.

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[–] bioemerl@kbin.social 3 points 11 months ago

It's been a good couple of years for news coming out of China.

Maybe we'll hear about to xi having a heart attack next