In the statement made on the official website of the international credit rating agency Fitch Ratings, it was stated that the Chinese government’s response to the coronavirus outbreak initially consisted of strict public health and social distance measures, and economic incentives have been relatively limited so far.
Pointing out that the National People’s Congress is planned to be held on April 18-19, the statement said, “More clarity should be provided in the Congress about the size and shape of the economic policy response planned by the authorities. This will be important in our future credit rating assessment of China.” It was said.
In the statement, it was emphasized that most of China’s policy response to the coronavirus is still pending, and the following was noted:
“The economy in China is gradually recovering, but we expect the activity to remain weak throughout the first half of the year. We expect the growth in the country, which was 6.1 percent last year, to bottom out below 2 percent in the whole of 2020. Our forecasts are that the weakening in foreign demand will continue and the coronavirus will “It depends on uncertainties, including possibilities such as having more destructive effects. On the other hand, we expect the budget deficit to national income ratio in China to increase from 5.8 percent last year to 8 percent.”
