Fitch revises up China's 2023 growth forecast to 5%

By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings announced Wednesday that it has revised up China’s economic growth forecast for this year to 5% from its previous estimate of 4.1%.

Consumption and economic activity are recovering faster than initially anticipated in the world's second largest economy after the authorities moved away from their "dynamic zero COVID-19" policy stance in late 2022, the global rating agency said in a statement.

"The large wave of COVID-19 infections that followed the authorities’ change of approach appears to be subsiding, based on public communications from health officials and improving mobility trends," it added.

Fitch said China's economic recovery is expected to be primarily led by consumption as households reengage in activities previously hampered by health controls.

China’s economy expanded 8.4% in 2021.

Fitch affirmed China's credit rating at ‘A+’ with a stable outlook in December 2022.