Fitch downgrades China to ‘A’, outlook stable

Fitch picked a heckuva day to downgrade a major economy.

• We forecast China’s general government deficit to rise to 8.4% of GDP in 2025, from 6.5% in 2024
• We forecast China GDP to increase by 4.4% in 2025 from 5.0% in 2024
• Tariff rise has been much more drastic and China will still be affected by a broader tariff-induced global slowdown

China’s finance ministry responded saying the downgrade is biased and cannot fully and objectively reflect the actual situation in China.

This article was written by Adam Button at www.forexlive.com.