Growth Prospects

China is disappointed with American rating agency Moody’s decision to revise the outlook for China’s sovereign credit rating, as the Chinese economy has recorded a continuous and steady recovery against the backdrop of the global economic recovery’s weakening momentum, a finance official said on December 5.

In response to a media inquiry about Moody’s change of outlook from stable to negative, the Ministry of Finance official said the agency’s concerns about China’s growth prospects and fiscal sustainability were unwarranted.

This year marks the first year that China’s economy has recovered from the impact of the COVID-19 pandemic. The country has withstood risks and challenges from abroad and downward pressure from multiple factors at home, with its gross domestic product (GDP) up 5.2 percent year on year in the first three quarters of 2023, the official said.

Recent forecasts from multiple international institutions, including the World Bank, the International Monetary Fund and the Organization for Economic Co-operation and Development, all showed that China can achieve its growth target of around 5 percent this year, the official said.

The Chinese economy has great resilience and potential, and its long-term sound fundamentals remain unchanged, the official said. He further noted that the country will remain an important engine for global economic growth in the future.

China’s huge domestic market has great demand potential, and the employment situation and prices remain generally stable, the official said. He added that the economy’s internal momentum will steadily increase as the country accelerates the promotion of its high-quality development.