Moody's Investors Service recently shifted its forecast for China's real GDP growth to 5 percent for both 2023 and 2024, up from its previous projection of 4 percent, to incorporate a post-reopening rebound in domestic demand, especially for services.
The Chinese government's decision to relax COVID-19 restrictions will naturally boost the country's economic activity from a 3 percent rise in 2022, said Moody's in the latest update of its global macro outlook 2023-24. The credit rating agency expects pent-up demand for non-traded services to support a consumption rebound starting this spring.
The People's Bank of China, the country's central bank, is providing liquidity support to revive the economy as it reopens and to stabilize the property sector. Further monetary policy easing will depend on the strength and durability of the rebound, said Moody's.
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