The report shows that while global economies have largely remained strong in the face of geopolitical risks, there are now signs of a slow down in growth.
Analysts say developed economies, such as the US, are less likely to be affected by a global growth slow down as their markets have largely performed well this year.
However, the global growth slow down poses a credit risk to emerging market economies, like South Africa.
Economist at ETM Analytics, Jana van Deventer explains.
“Emerging markets are viewed as being quite vulnerable to a global growth slowdown given that these economies have accumulated substantial levels of debt in the past decade. In terms of what this means for South Africa for example, where some emerging economies have accumulated private sector debt, South Africa has accumulated very high levels of government debt. This remains one of the key risks to South Africa’s credit rating outlook.”
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