Moody’s: US-China trade tensions likely to deteriorate this year, could deter growth

The US-based ratings agency, Moody’s Investors Service, highlighted the following risks likely to emerge from the US-China trade war.

Key Points:

US / China trade tensions weigh on macroeconomic outlook, could deter growth.

US trade tensions with China are more likely to deteriorate this year and will dampen global growth in 2019.

Potential further tariffs on US imports from China, retaliation by China expected to shave up to 0.3-0.5 pct points from China's real GDP growth in 2019.

For the US, the underlying economic momentum remains "very strong".

For most G-20 economies, growth prospects remain solid and near-term global outlook for many advanced economies broadly resilient.