In its latest report, the US-based credit rating agency, Moody’s Investors Service, is out with its forecasts on the global economy.
Key Highlights:
Asia Pacific non-financial corporates show stable credit trend, but escalating trade tensions pose risks.
Further escalation of trade tensions to not only harm growth in both China and US, it would also spill over to trade-dependent Asian economies.
Trade tensions pose risks to large exporters of ‘intermediate goods’ to China where goods are assembled into finished products for shipment to the US.
In China, economic growth will likely decelerate slightly to 6.6% in 2018 from 6.9% in 2017
The expectation of stable credit trend supported by Moody’s expectation of sustained stable global growth.
The outlook for G20 advanced economies is positive with a growth forecast of 2.3% in 2018.
Expects US growth to outpace that of other advanced peers of G20 at 2.7% in 2018.
Expects an upswing in growth for emerging market countries, with G20 emerging economic growth forecast to be 5.2% at the end of 2018.
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