Mubasher: Global economic growth will be maintained through 2018, underpinned by solid underlying growth in advanced economies and a broadening recovery in emerging markets, according to a recent report by Moody’s Investors Service.
The ratings agency said in its global macroeconomic outlook report for 2018-2019 that it expects above-trend global GDP growth of 3.2% in 2018 and 3.1% in 2019, similar to 2017 and up from 2.5% growth in 2016.
Unlike in recent years, Moody's expects growth to be more broad-based and sustainable in the year ahead, the report noted.
Growth in advanced economies is expected to be stable, in the G20 countries, with growth of approximately 2.0% in 2017, 2018 and 2019, compared with 1.5% in 2016.
This outlook takes into account the fact that many advanced economies, including the US, are experiencing above-trend growth rates and will eventually slow to their lower long-term potential over time, the report indicated.
Moody's expects that emerging market countries will grow at a rate of 5.4% in 2018, exceeding the forecasted 2017 growth rate of 5.0%.
In particular, recovery in Argentina, Brazil, Mexico, Saudi Arabia and South Africa will drive growth in this segment.