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Rating agency Fitch rated China as "A+", The fall in oil prices led to Saudi Arabia's fiscal deficit in the second quarter

Rating agency Fitch rated China as "A+"
The rating agency Fitch has confirmed that China's rating is "A+" and the rating outlook is stable. At the same time, China’s economic growth forecast for this year has been raised to 2.7% from the 1.2% previously estimated, which is the highest among sovereign nations rated by Fitch. Fitch said that after China's economy was hit hard by the new pneumonia epidemic in the first quarter, although economic growth is still uneven, it has recovered significantly. In addition, Fitch believes that the escalating geopolitical situation in China and the US will not affect China's credit base for the time being.

The fall in oil prices led to Saudi Arabia's fiscal deficit in the second quarter
According to figures released by the Ministry of Finance of Saudi Arabia, the local fiscal deficit in the second quarter was US$29.12 billion, mainly due to the decline in oil prices that weakened its revenue. According to the report, in the second quarter, Saudi Arabia’s overall government expenditure has also been reduced by 17% year-on-year, but the deficit still cannot be reversed. It is obvious that Saudi Arabia has difficulty facing a low oil price for a long time. But excessive oil prices will release American shale oil. Therefore, it is not ruled out that in the eyes of Saudi Arabia, the most ideal is to maintain the oil price at the level of approximately US$40 for the New York futures oil, with a fluctuation range of less than US$2

 

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