Fitch upgrades China’s growth rate due to strong export recovery & global demand
Ratings agency Fitch revised China’s GDP growth rate projection from 8% to 8.4% on Thursday, citing strong export recovery and global demand.
The country’s economic rebound to 6.5 percent in the fourth quarter of 2020 was described as “a remarkable achievement in the context of the pandemic.” Fitch said it reflected China’s success in containing the virus, as well as strong investment growth and a boost to net trade as exports rebounded very rapidly from mid-year and services imports collapsed.
China is the only major economy that is starting to normalize macroeconomic policy settings, where the fiscal deficit is being scaled back and credit growth is slowing as the economic recovery matures, said Fitch’s chief economist, Brian Coulton.
The agency has also updated its forecast on the global GDP growth – from 5.3% in its December’s projection to 6.1%. It said the main driver of the global forecast revision was the much larger than expected fiscal stimulus package recently passed in the United States.
The $1.9 trillion stimulus represents more than 2.5% of global GDP, according to Coulton. “The pandemic is not over, but it is starting to look like we have entered the final phase of the economic crisis,” he said.
China is the only major economy that is starting to normalize macroeconomic policy settings, where the fiscal deficit is being scaled back and credit growth is slowing as the economic recovery matures, said Fitch’s chief economist, Brian Coulton.
The agency has also updated its forecast on the global GDP growth – from 5.3% in its December’s projection to 6.1%. It said the main driver of the global forecast revision was the much larger than expected fiscal stimulus package recently passed in the United States.
The $1.9 trillion stimulus represents more than 2.5% of global GDP, according to Coulton. “The pandemic is not over, but it is starting to look like we have entered the final phase of the economic crisis,” he said.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.