Fitch sees China's growth below government's target

Economy 6/20/2017, 7:45 AM
Fitch sees China's growth below government's target

As national debt mounts, the world's second-largest economy is set to struggle to keep growth in line with the aspirations of the government in Beijing, Fitch Ratings said in its quarterly global economic outlook. Major media outlets reported on Tuesday that the document suggests China's expansion will slow from this year's 6.5% to 5.9% in 2018 and even 0.1 percentage points more the year after. Still, growth for 2017 is still projected at 0.2 points higher than in the last update.

Lending is drying up, analysts noted. The participation of new loans in the gross domestic product has already slumped, which may spill over to housing, the assessment reveals. Another headwind is seen in investment in infrastructure. Japan's GDP outlook was also improved by 0.2 points for this year, to growth of 1.2%. The East Asian giant will expand 1.1% in 2018 and 0.7% in the year after that, the agency forecasted.

TeleTrader Newsroom / IT



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