Moody’s: China's economy to face heightened risks from a potential future property downturn

Dhwani Mehta FXStreet

The US-based ratings agency, Moody’s Investors Service, published its latest report on China, titled “Economy at higher risk from potential property downturn"

Key Points:

China's economy would face heightened risks from a potential future property downturn compared to when Moody's previously analyzed the macroeconomic importance of the country's real estate sector in 2014

At the same time, the scope of the Chinese authorities for mitigating such an impact through fiscal and monetary policy has become more limited

"Around 25%-30% of China's GDP are connected to final demand from the property and construction sectors," says Michael Taylor, a Moody's Managing Director. "This creates the potential for developments in the property market to have large macroeconomic effects."

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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