Moody's: China's 2017 GDP forecast revised up to 6.8%

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US-based ratings agency Moody’s released its global economic outlook Wednesday which raises China's GDP forecast to 6.8% from 6.6%.

Raising its China forecast, the agency warned that the country's economy has become increasingly reliant on new debt to foster growth.

The agency downgraded China's ratings by one notch to A1 in May, saying the financial strength of the economy would erode in the coming years.

The agency kept its forecast for G20 economic growth at just over 3 percent for this year and next, but warned of geopolitical risks, US protectionism and spillovers from global monetary tightening.

"The balance of risks is more favorable than it was at the beginning of the year," Moody's said. "However, we note event risks related to conflicts in the Korean Peninsula, the South China Sea and the Middle East."

According to data from China's National Bureau of Statistics's, GDP in the first quarter of 2017 grew by 6.9 percent over the results of the comparable period in 2016, an improvement on the target 6.5 percent growth set by the government for this year.

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