Fitch said in its Global Economic Outlook.....>

CHINA: Fitch said in its Global Economic Outlook that the "slowdown we are

expecting in China in the near term is relatively modest and all the while

China's weight in global GDP is rising - adding to its global growth

contribution. Barring a renewed commodity price slump there is space for demand

to recover further in EM commodity producers."

- But Fitch warns that "caution is still warranted on the medium-term growth

outlook. Supply-side growth potential in the advanced economies will be dampened

by deteriorating demographics and sluggish productivity growth. Current rates of

GDP growth are well above Fitch estimates of potential across most major

advanced economies. This implies that spare capacity is diminishing and has

implications for policy support as current expansionary settings will become

harder and harder to justify. And while credit growth in China has recently

slowed, it continues to outpace nominal GDP. The process of stabilizing debt in

China is likely to take a toll on growth in the medium term."