New Delhi, June 18 -- Although China's economic growth will remain steady, it will likely slow to about 4.6 per cent in 2026 amid weak domestic demand and broader cross-sector pressures as per Fitch Ratings.

Noting China's latest retail sales and investment data, Fitch views China's inflation and property sector as key credit risks, despite it's 'A' rating. Retail sales fell 0.6 per cent in May 2026, while fixed-asset investment dropped 4.1 per cent in the first five months, as reported by Fitch Ratings.

"May 2026's retail sales contracted 0.6% yoy - the first decline since late 2022 - while fixed-asset investment declined by 4.1% in the first five months," it said.

Fitch further noted, while China's headline inflation has turned posit...