S&P affirms China's 'A+' rating; sees growth above 4pct as fiscal support continues
BENGALURU: S&P on Friday affirmed China’s sovereign credit rating at ‘A+’, citing its expectation that the country’s economy will likely continue to grow by four per cent or more over the next one to two years.
S&P has maintained China's sovereign credit rating at A+, projecting that the nation's economy will expand by a rate of four percent or higher within the next one to two years. The agency has rated the outlook as stable, indicating its belief that China will offer increased fiscal support to maintain this growth trajectory. This resilience stems from China's notable advancements in bolstering supply chains, technological advancements, and manufacturing prowess, allowing its economy to withstand global challenges such as trade disputes with the US and geopolitical tensions like the Iran conflict.
Despite these strengths, S&P has identified a weakness in domestic demand, linked to a prolonged downturn in the property sector and a lack of consumer spending. Fitch, another credit rating agency, has cautioned that China could face deflation if domestic demand does not show a more robust recovery, even though recent price pressures have shown improvement.
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