Moody's rating agency has downgraded its GDP forecast for China next year:
- the 2023 forecast remains at 5%
- 2024 cut to 4% from 4.5% the firm was expecting previously
Moody's reasoning that:
- China is facing "considerable growth challenges" stemming from weak business and consumer confidence amid economic and policy uncertainty, continued property sector woes and an aging working population.
- "Data from China suggest that the economic recovery from a prolonged zero-COVID policy remains muted, as the reopening momentum seen in March, April and May appears to be waning."
- "We believe that low consumer confidence is holding back household spending, and economic and policy uncertainty will continue to weigh on business decisions".
