MOSCOW (Sputnik) – At the same time, Moody's reaffirmed an "Aa3" rating for China's long-term debt as the Asian country's fiscal and foreign-exchange reserves are still sizable, giving hope to tackle economic imbalances.
"Without credible and efficient reforms, China's GDP growth would slow more markedly as a high debt burden dampens business investment and demographics turn increasingly unfavourable. Government debt would increase more sharply than we currently expect," the rating agency said in the statement.
The assessment comes days before the National People's Congress (NPC) will vote on China's 13th five-year plan, the country’s social and economic policies for the next half a decade.
