Moody’s: Economic growth in China will slow to 5%

Baku. 26 May. REPORT.AZ/ Moody’s expects growth of Chinese economy will slow to about 5% over the next five years. 

Report informs referring to Rambler News Service, last year the Chinese economy grew by 6.7%.

In addition, the agency says they can further cut the sovereign rating of the country. 

Notably, on May 24 the Moody’s lowered China’s long-term sovereign rating by one notch to A1 from Aa3. Moody’s said the downgrade reflected its expectations that China’s financial strength will erode somewhat over the coming years, with economy-wide debt continuing to rise as potential growth slows. The statement came from Li Xiujun, Moody’s vice president of credit strategy and standards.

Li Xiujun also noted that if in the future China's structural reforms can prevent its debts leverage from rising more effectively without increasing risks in the banking and shadow banking sector, then it will have a positive impact on China's rating. Otherwise the downgrading is inevitable. However, the vice president didn’t utter China’s critical debt limit.