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Credit rating agency Moody’s has warned that global economic growth is likely to slow in the next two years.
The international ratings agency expects the trade war between the United States and China to escalate. The global growth slowdown poses a credit risk to emerging market economies, like South Africa.
The report shows that while global economies have largely remained strong in the face of geopolitical risks, there are now signs of a slowdown in growth.
Moody’s expects global growth to slow to under 3% for next two years. This is after it estimated a 3.3% growth for this year.
It adds that the recently imposed tariffs on $200 billion worth of Chinese goods are likely to rise to 25%.
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