Beijing: International credit rating agency Fitch Ratings has reported that domestic financial imbalances in China have reached unprecedented levels, driven by high household savings, weak consumption, and a recent contraction in capital spending.

According to Anadolu Agency, a report by Fitch highlighted that these imbalances have made China's economic growth increasingly dependent on fiscal support and net trade. The gap between strong private savings and rising public borrowing is expected to persist, causing the economy to lean more on external demand and government deficits for growth.

The statement from Fitch detailed that the corporate sector maintains a significant net borrowing position, as its investments surpass its savings. However, this is counterbalanced by the household sector's substantial net lending position, a result of consistently high savings and a noticeable decline in real estate investment in recent years.

Fitch also pointed out that the household savings rate was 34.9% in 2023, remained steady in 2024, and rose to 35.3% in 2025, as income growth continued to outpace consumption. With an overall decline in investment, the corporate sector's net borrowing position has likely narrowed, further enhancing the private sector's overall net credit balance.