Clicky

  • Login
  • Register
  • Submit Your Content
  • Contact Us
Wednesday, August 21, 2024
World Tribune
No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
Submit
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food
No Result
View All Result
World Tribune
No Result
View All Result

Global growth to slow, but India, Indonesia may be bright spots: Moody’s

August 31, 2023
in News
Reading Time: 3 mins read
A A
Global growth to slow, but India, Indonesia may be bright spots: Moody’s
0
SHARES
ShareShareShareShareShare

READ ALSO

Ukraine carries out one of largest-ever drone attacks on Moscow

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

An aerial view shows the Central Bank of India building, in Mumbai, India, 28 September, 2022. (Photo by Niharika Kulkarni/NurPhoto via Getty Images)

Nurphoto | Nurphoto | Getty Images

The global economy is set to slow down as inflation remains stickier than expected — but there may be some “pockets of resilience,” according to Moody’s Investors Service.

“We’re expecting globally a slowdown in growth, and that will have an impact on [emerging markets] Asia through trade conditions as well as access to financing in the region,” Marie Diron, managing director for global sovereign and sub-sovereign risk at Moody’s Investors Service, told CNBC Thursday.

Diron said the slowdown can be attributed to three factors: higher interest rates that persist, China’s slowing growth, as well as financial system stresses.

While central banks have managed to steer the global economy and “create a disinflationary trend” by raising interest rates, inflation risks are still a sticking point, she said.

“There are still risks out there that inflation could prove stickier … than currently expected, and that would lead to higher risks for longer and slower growth,” explained the managing director.

Global growth to slow, but India, Indonesia may be bright spots: Moody’s

The Federal Reserve started its steady stream of rate hikes in March 2022, as inflation climbed to its highest in 40 years.

In the last year and a half, the U.S. central bank has raised the benchmark fed funds rate to between 5.25% to 5.5%. Fed Chair Jerome Powell last Friday warned that additional interest rate increases could be on the table.

A second risk is financial system stress, Diron said.

“We’ve seen banks absorbing that period of higher rates, which has had some positive impacts on margins for some, but also needed an adjustment in businesses, an adjustment to continue to attract deposits,” she explained.

“It could be that there are pockets of stress that currently have not quite emerged that materialize maybe later this year on to next year.”

Finally, China is a third source of vulnerability.

Moody’s is not expecting a quick turnaround in the world’s second largest economy and sees “relatively slow growth in China with implications across the region,” Diron said.

“It is an outlook really clouded by downside risks. And that may have an implication for default rates.”

China has been battered by a slew of disappointing economic figures, with the latest economic data broadly missing expectations.

‘Pockets of resilience’

While Moody’s expects a coming slowdown, there may be some “pockets of resilience,” Diron said.

She acknowledged that “we do see a slowdown from this year onto next year,” but added: “We see relatively robust growth and favorable conditions in markets like India and Indonesia.”

Inflation will always be 'very well contained' in China, analyst says

Indonesia in particular has the potential to materialize the country’s “vast natural resources” and develop the downstream sectors, through processing of minerals through the value chain, Diron noted.

The Southeast Asian nation carries large natural deposits including tin, nickel, cobalt and bauxite — some of which are important raw materials for electric vehicle production.

Credit: Source link

ShareTweetSendSharePin
Previous Post

Remote work, hybrid to grow despite RTO push, say execs

Next Post

Oprah, Dwayne Johnson commit millions to Maui fire fund

Related Posts

Ukraine carries out one of largest-ever drone attacks on Moscow
News

Ukraine carries out one of largest-ever drone attacks on Moscow

August 21, 2024
Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says
News

Volatility spike was a ‘huge overreaction,’ but more could be ahead, strategist says

August 21, 2024
Japan trade on deck, Wall Street rally pauses
News

Japan trade on deck, Wall Street rally pauses

August 21, 2024
GMC targets electric truck leadership against Tesla, Ford, Rivian
News

GMC targets electric truck leadership against Tesla, Ford, Rivian

August 21, 2024
Brits snap up lower mortgages as BOE cut boosts market
News

Brits snap up lower mortgages as BOE cut boosts market

August 20, 2024
Eli Lilly weight loss drug cuts risk of developing diabetes in trial
News

Eli Lilly weight loss drug cuts risk of developing diabetes in trial

August 20, 2024
Next Post
Oprah, Dwayne Johnson commit millions to Maui fire fund

Oprah, Dwayne Johnson commit millions to Maui fire fund

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

What's New Here!

Growing mangoes in Greece is the latest bizarre climate change experiment as droughts become the norm

Growing mangoes in Greece is the latest bizarre climate change experiment as droughts become the norm

August 11, 2024
The Ring Stick Up Cam is down to its lowest price yet

The Ring Stick Up Cam is down to its lowest price yet

August 7, 2024
General Motors (GM) earnings Q2 2024

General Motors (GM) earnings Q2 2024

July 23, 2024
Japan’s tourist surge is a headache for luxury brands

Japan’s tourist surge is a headache for luxury brands

August 1, 2024
Korean research utilises LLM to predict dementia risk

Korean research utilises LLM to predict dementia risk

August 6, 2024
WTI, Brent rise after sell-off

WTI, Brent rise after sell-off

August 6, 2024
Sydney McLaughlin leads USA to dominant 4x400m Olympic gold

Sydney McLaughlin leads USA to dominant 4x400m Olympic gold

August 10, 2024

About

World Tribune is an online news portal that shares the latest news on world, business, health, tech, sports, and related topics.

Follow us

Recent Posts

  • France to donate 100,000 mpox vaccines as nation prepares for outbreak at home
  • Ukraine carries out one of largest-ever drone attacks on Moscow
  • Aaron Boone on how Yankees’ catching situation will play out down stretch
  • Yankees’ DJ LeMahieu in another rut as porous season continues

Newslatter

Loading
  • Submit Your Content
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2024 World Tribune - All Rights Reserved!

No Result
View All Result
  • Home
  • News
  • Business
  • Technology
  • Sports
  • Health
  • Food

© 2024 World Tribune - All Rights Reserved!

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In