Standard Chartered on Wednesday revised its 2025 economic growth forecast for China to 4.8% from 4.5%, given "stronger-than-expected" real activity performance in the first two months and the March PMI survey.

While China has set this year’s fiscal deficit target of around 4% of gross domestic product, Fitch forecasts that China’s augmented deficit — a broader measure of the fiscal gap — will widen to 8.4% of GDP in 2025, from 6.5% in 2024. That projection is “well above” the median 2.7% of GDP in Fitch’s ‘A’ category, the ratings firm said.

A Reuters poll that was completed before the first quarter GDP data had forecast China’s 2024 growth at 4.6%, but many economists have upgraded their projections since the release of the ...

March PMIs beat market expectations, although Q1 momentum softened from Q4-2024. We raise our 2025 growth forecast to 4.8% from 4.5% on Q1 outperformance, firm policy assurances. CPI deflation likely eased in March on base effects; the import contraction may have persisted, Standard Chartered's economists Hunter Chan and Shuang Ding report.

A number of global financial institutions have turned more upbeat on China’s economic outlook this year even amid concerns around tariffs, citing a stronger-than-expected recovery fueled by Beijing’s stimulus push.

Global ratings agency Fitch on Thursday downgraded China's sovereign credit rating, citing expectations of a continued weakening of public finances and rapidly rising debt.

Global ratings agency Fitch on Thursday downgraded China's long-term foreign currency credit rating to 'A' from 'A+', on expectations of weak public finances and rapidly rising debt.

Overseas markets also slid Friday. In overnight trading in Asia, Tokyo's Nikkei 225 lost 2.8%, while South Korea's Kospi sank 0.9%. Markets in Shanghai, Taiwan, Hong Kong and Indonesia were closed for holidays, limiting the scope of Friday's sell-offs in Asia.