2/9/2023-|Last update: 2/9/202309:58 AM (Mecca Time)
Moody’s raised its forecast for the growth of the US economy for the current year 2023, but lowered its estimates for China next year 2024.
And she said – yesterday, Friday – that while the risk of recession in the United States is receding, the challenges facing China are escalating.
“We have raised our forecast for the growth of the US economy to 1.9% in 2023 from 1.1% in our forecast for May,” she added in a report.
And the agency kept its growth forecast for 2024 at 1%, and said that high interest rates would act as a brake on the economy.
“We believe it will be difficult for the Federal Reserve (US central bank) to achieve a sustainable decline in inflation to its 2% target if current economic conditions persist,” Moody’s added.
Great growth challenges in China
On the other hand, the report stated that China faces “significant growth challenges” resulting from weak business and consumer confidence, amid a state of economic and political uncertainty, the persistence of real estate sector problems and the large age of employment.
Moody’s kept its growth forecast for this year at 5%, but lowered its forecast for 2024 to 4% from 4.5% previously.
The agency rates China at “A1” (A1) with a stable outlook, which is 4 notches lower than the United States with the highest rating “AAA” (AAA), according to the agency.
Moody’s said in its report that “the data from China indicates that the economic recovery from the eradication of Covid-19 policy, which has been in place for a long time, remains weak.”
“The recovery that accompanied reopenings in March, April and May appears to be slowing,” she added.
“We believe that low consumer confidence is hampering household spending, and that economic and political uncertainty will continue to influence corporate decisions,” she added.
2023-09-02 07:02:25
#Moodys #raises #growth #forecasts #2023.. #China
