Fitch cuts China's 2021 GDP forecast to 8.1% on property slowdown
|Amidst looming risks Evergrande, Fitch Ratings slashed China’s 2021 GDP forecasts from 8.4% to 8.1%.
The US-based rating agency said that the GDP forecast downgrade was due to the impact of the slowdown in the country's property sector on domestic demand.
Additional takeaways
"Deleveraging dynamics weighing on recovery.”
“Government policy is being recalibrated.”
“Housing to take a toll on domestic demand, global commodities.”
“More broadly that challenges to EM growth in 2022 are rising.”
Market reaction
The latest upbeat news on China Evergrande is boosting the market sentiment, leading the way, with the Shanghai Composite Index up 0.65% on the day.
USD/CNY is trading 0.16% higher at 6.4671, with the full markets returning.
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