Sunday, October 1, 2023

Moody’s raised its growth forecast for the US and lowered that of China

Moody’s revised its growth forecasts for the United States economy in 2023 to 1.9% from the 1.1% it estimated in May, while revising its forecasts for China in 2024 downward. , from 4.5% to 4%.

The increase in Gross Domestic Product (GDP) calculations in the United States is due to the “strong economic stimulus” that has occurred in the country in recent months.

However, looking to 2024, high interest rates will act “as a brake” on economic growth, leading Moody’s to maintain its GDP expansion forecast of 1%.

Last week it was noted that the US economy created 187,000 new non-agricultural jobs in the month of August, a figure higher than the 157,000 new jobs created in July, although the unemployment rate increased by three tenths, up to 3.8%.

This data shows that the US labor market continues to offer signs of strength and has created jobs for 32 consecutive months, especially in the health, leisure and hotel, social assistance and construction sectors.

In the case of China, although it maintained the growth forecast for 2023 at 5%, a scenario of “obstacles” was considered for this level of growth to continue, so the growth projection was revised downwards . 2024.

The weakness of domestic consumption or the business sector is a cause of alertness for Moody’s, which sees a cooling of the Chinese economy.

China’s financial management agencies have announced reductions in mortgage interest rates and minimum initial contributions for home purchases to stimulate the real estate market, which in recent times has been under added pressure due to problems with developers Country Garden and Evergrande.

Nation World News Desk
Nation World News Desk
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