Moody’s cuts China’s 2024 economic growth forecast, lifts US GDP 2023 expectations

Global rating agency Moody’s cuts its economic growth forecasts for China, as well as revise up the US Gross Domestic Product (GDP) predictions in its latest report, published late Friday.

"We have raised our growth forecast for the United States' economy to 1.9% in 2023 from 1.1% in our May outlook, acknowledging the strong underlying economic momentum," Moody's said in a report per Reuters.

The rating giant also flagged hardships for the Federal Reserve (Fed) in defending the 2.0% inflation target should the current economic transition prevail while keeping the 1.0% US growth forecasts for 2024.

On the other hand, Moody’s expects China’s economy to grow at the same rate of 5.0% in 2023 expected earlier. However, the global rating company also downwardly revises its 2024 GDP for China to 4.0% from 4.5%.

In doing so, Moody’s cites low consumer confidence as holding back the household spending while adding that the economic and policy uncertainty will continue to weigh on business decisions.

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