Moody’s, the global credit rating agency, has opted to retain China’s A1 rating for its long-term national debt, a robust grade slightly below that of the US and UK. The decision hinges on the belief that the Chinese government will adeptly navigate its economic challenges in an “orderly fashion.”

China’s finance ministry echoed this sentiment, affirming that the country’s long-term prospects remain unchanged, expressing confidence in its ability to effectively manage the impact of the ongoing slowdown in the property sector. The ministry stated that China’s macroeconomy is in the process of recovery, with high-quality development making steady progress. It further emphasized that Moody’s need not harbor concerns about China’s economic growth prospects and fiscal sustainability.

Despite China’s economic narrative witnessing decades of impressive growth, with an annual expansion exceeding 8%, the country is currently on track to achieve a growth rate of 5.4% this year. However, forecasts from the International Monetary Fund suggest a notable deceleration, with growth expected to taper to 3.5% by 2028.

This economic slowdown in China has triggered warnings from international economic groups, anticipating repercussions on the global economy in the coming years. Regions such as sub-Saharan Africa, which have experienced a significant influx of Chinese investment, are particularly poised to feel the impact.

As the world closely monitors China’s economic trajectory, Moody’s decision to uphold its rating underscores a level of confidence in the Chinese government’s ability to orchestrate a measured response to the challenges at hand.

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