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News News

Fitch Upgrades China's 2021 Growth Forecast to 8%: CNBC

Date: 2021-04-09
Views: 0

Fitch Ratings, a global credit ratings agency, raised its forecast on China's GDP growth to 8 percent for 2021 from its previous 7.7 percent forecast in September, according to a Dec 10 report from CNBC.

The agency's new forecast was based on increased domestic demand and expectations for COVID-19 vaccine deployment in China, said the report.

'This would be well above our estimate of China's long-term growth potential of around 5.5 percent, but is quite achievable from such a low base in 2020,' Fitch analysts Brian Coulton and Pawel Borowski wrote in the report.

Data shows Chinese consumption, especially in the catering industry and other activities that involve social gatherings, has witnessed strong recovery during the last few months, the analysts said.

Fitch's forecast of China's 8 percent GDP growth next year falls within a range of other agencies' expectations, as Japanese brokerage Nomura Securities predicts an expansion of 9 percent next year and French investment bank Natixis forecasts growth of 7.8 percent for China in 2021.

According to Fitch, global growth is set to contract 3.7 percent this year, and expand 5.3 percent next year.

Source: ChinaDaily

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