China’s growth could run over 5.7 per cent forecast next year with US trade deal, says Fitch
- Fitch Ratings has forecast China’s growth to slow to 5.7 per cent in 2020 from 6.1 per cent this year
- But US-China ‘phase one’ trade deal could see growth outlook exceeded, says global ratings agency
The completion of a “phase one” trade deal with the United States could push China’s growth next year above current expectations, global credit ratings agency Fitch said on Wednesday.
Fitch repeated its September forecast that Chinese growth would slow to 5.7 per cent in 2020 from 6.1 per cent this year, assuming the US implemented all tariffs it had announced for Chinese imports, including a new 15 per cent tariff due to take effect on December 15.
“Recent progress towards reaching a US-China ‘phase one’ trade deal suggests the possible postponement or eventual removal of some existing tariffs, which could pose an upside risk to our growth outlook,” the ratings agency said.
Recent progress towards reaching a US-China ‘phase one’ trade deal suggests the possible postponement or eventual removal of some existing tariffs, which could pose an upside risk to our growth outlook
Fitch is the latest private-sector organisation to see upside potential for China’s growth outlook.