Fitch: Trade war causing collateral damage to global economic outlook

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17 junio 2019

Fitch: Trade war causing collateral damage to global economic outlook

World growth forecast for 2020 has been lowered despite our base case that assumes further U.S. tariffs on China are avoided
Trade war is weighing on investment prospects and has sharply increased downside risks to world economic growth forecasts
U.S. Fed expected to leave interest rates on hold in 2019
Central bank responses will not fully compensate for impact of rising trade uncertainties
For other EM, trade concerns are also impeding benefits of looser global monetary conditions on capital inflows
On ongoing trade war, says while eurozone looks likely to avoid recession, growth outlook remains weak
World growth is expected to fall to 2.8% this year from 3.2% in 2018

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