Rating agency Moody's Investors Service raised its forecasts for China's economic growth in the wake of "significant" fiscal and monetary stimulus policies.
The ratings agency raised its economic growth forecasts for the mainland to 6.6 percent for 2016 from 6.3 percent previously and to 6.3 percent in 2017, up from 6.1 percent.
China's economy has been slowing, posting its slowest growth rate in 25 years in 2015, and a slew of readings released earlier this month came in slightly below expectations.
Analysts expected that the implications for long-term growth would likely spur further stimulus, particularly from the fiscal side amid concerns additional monetary easing may overheat the property sector. The country's central bank, the People's Bank of China (PBOC), has already run through several rounds of easing, including lowering banks' reserve requirement ratios and cutting interest rates.
Moody's upgraded its growth forecast for G20 emerging markets by 0.2 percentage point each to 4.4 percent for 2016 and 5.0 percent for 2017, mainly on Russia's and Brazil's economies contracting at a slower pace and higher China growth expectations.
But Moody's noted that emerging markets have previously experienced "sharp reversals" in capital flows when the U.S. Federal Reserve has tightened policy, such as in 2013 when the central bank first broached the idea that it would taper its quantitative easing program.
Rating agency Moody's Investors Service raised its forecasts for China's economic growth in the wake of "significant" fiscal and monetary stimulus policies.
Moody's upgraded its growth forecast for G20 emerging markets by 0.2 percentage point each to 4.4 percent for 2016 and 5.0 percent for 2017, mainly on Russia's and Brazil's economies contracting at a slower pace and higher China growth expectations.
