Fitch revises outlook on China to negative; affirms at 'A+'
- Outlook revision reflects increasing risks to China's public finance outlook
- Forecast general government deficit in China to rise to 7.1% of gdp in 2024
- Believes that fiscal policy is increasingly likely to play an important role in supporting growth in coming years
- 2024 deficit will be highest since 8.6% of GDP deficit in 2020
- The 2024 deficit will be the highest since the 8.6% of GDP deficit in 2020
- Forecasts GDP growth to moderate to 4.5% in 2024, from 5.2% in 2023
- Do not forecast a prolonged period of deflation, with inflation of 0.7% by end-2024 and 1.3% by end-2025
