Fitch Ratings: China's growth declines due to virus

Fitch Ratings reported that the GDP growth rate in China in 2020 is 5.9 percent in key scenarios, but they expect growth to fall below this basic scenario after the emerging new coronavirus outbreak.

Estimating that the growth will not take place in the range of 5.2-5.7 percent in 2020 due to the rate of control of the coronavirus epidemic, Fitch said that if the monetary policy against the effect of the virus epidemic slowed down, the leverage ratio in the Chinese financial system would increase, even more, He emphasized that it would be negative in terms of credit ratings for operating environments for non-financial institutions. Fitch also stated that the Chinese authorities' putting growth in front of financial leverage reduction depends on the duration and severity of the virus outbreak. Fitch Ratings: China's growth declines due to virus Fitch also stated that if there is a recovery towards the end of 2020, the growth will be around 5.5 percent under the first forecast, which will grow by 5.9 percent in the whole of 2020. Fitch emphasized that if the outbreak could not be controlled until the second quarter, growth would drop more precisely and growth would decrease to 3 percent in the first quarter of 2020.