Beijing, April 9, 2024 – Despite the negative outlook on China’s sovereign debt by Fitch Ratings, the Finance Ministry of China has defended the country’s financial position. The ministry stated that China’s deficit is at a moderate and reasonable level and that risks are under control.
Despite challenges posed by the COVID-19 pandemic, including a slowdown in demand and a property crisis, China has implemented various fiscal and monetary policies to stimulate economic growth. The government has set a GDP growth target of 5% for 2024 as part of its efforts to support the economy.
In the first quarter of 2024, China’s economy exceeded expectations, benefiting from government policies and an increase in demand. The country’s GDP expanded at a 5.3% annual pace in the January-March period, surpassing analysts’ forecasts of 4.8%. Quarter-on-quarter growth was 1.6%, indicating a positive trend in the economy.
China’s Finance Ministry has emphasized that despite Fitch Ratings downgrading China’s sovereign debt outlook to negative while maintaining its A+ rating, it does not reflect the country’s financial position accurately. The ministry stated that China remains financially stable and able to manage its debt responsibly with appropriate measures to address any risks or challenges posed by economic fluctuations or other factors.
