Source: Sharecast
Despite trade challenges and geopolitical tensions, and a likely slowdown in export growth over the coming months, China's economy has been resilient and its global competitiveness should mitigate a moderation in growth, Moody's said.
The ratings agency said the change in stance “reflects our assessment that economic and fiscal strength will be resilient to ongoing domestic as well as trade and geopolitical challenges".
The last downgrade in Moody's China outlook came in December 2023 when it was downgraded to 'negative' amid the country's spiralling property crisis and downside risks to fiscal, economic and institutional strength.
China's finance department acknowledged Monday's upgrade in a statement, saying it will continue to progress economic restructuring and strengthen fiscal sustainability.
“We will respond to uncertainties in the external environment with the certainty of our sustained, healthy economic and social development," the Ministry of Finance said.