April 27 (Reuters) – Credit rating agency Moody’s on Monday revised China’s outlook from ‘negative’ to ‘stable’, citing resilient economic and fiscal strength despite ongoing domestic pressures and trade and geopolitical challenges.
The agency said export growth is likely to be moderate, but China’s competitiveness should buffer the slowdown, allowing GDP growth to decline only gradually.
China’s industrial profits grew last month at the fastest pace in six months, highlighting an uneven recovery with a strong industrial sector but weak consumption, slowing exports and rising risks of higher costs and tensions in the Middle East.
Moody’s added that policies targeting high-productivity sectors and a controlled approach to resolving regional and local government debt will help improve capital efficiency, even as overall government debt increases.
