• Rating agency Fitch has revised its forecast for China’s economic growth in 2023 to 5.0% from 4.1% previously as consumption and broader activity are recovering faster than initially anticipated after the end of the “zero-COVID” regime.
• Fitch said the recovery will be primarily led by consumption, noting that many high-frequency indicators have recently rebounded though still remain below pre-pandemic norms.
• Despite the forecast upgrade, the rating agency expected the economic rebound this year to be less vigorous than that in 2021, when the economy posted GDP growth of 8.4%.