Moody’s rating agency: negative outlook for emerging markets
Moody’s international rating agency has presented a new outlook for emerging markets. Moody’s experts have revised the previously published data for the next year and downgraded them to “negative” status. The reason for the change was an increase in trade and geopolitical risks in the world.
According to analysts of Moody’s, this year emerging markets show a slowdown in economic growth, so the forecast for 2020 is stated as “negative”. The main factors of this state is the uncertainty in a number of processes that are carried out in the world arena.
Moody’s highlighted the issue of recession as an important point. Despite the fact that its probability is quite high, next year the process will not be observed in emerging economies. The only country for which the risk of recession is high is Argentina.
Experts believe that emerging markets will strengthen their positions and their growth next year will be higher than this year, by about 4.5%. However, this cannot be said about the situation in the developed economies, where the improvement rate will not exceed 1.5%.
Moody’s has reduced its forecast for world GDP by two years. In addition, it is worth preparing for serious risks that will accompany the processes of the global economy. But according to experts, this situation does not threaten the crisis, although the growth rate will slow down significantly in some strong countries.
The impact of political and trade factors will be reflected differently in different regions. In Latin America, for example, there will be positive trends that will accelerate economic recovery. However, it should be taken into account that global political processes may limit the implementation of reforms in some states.
Moody’s Investors Service is an authoritative expert that conducts global analytical research, shows the risks for the development of a particular segment, and is responsible for credit ratings.
The company employs about 4500 specialists in 26 countries, who monitor global processes in the world economy and domestic markets. Regular forecasts from Moody’s allow us to work out weaknesses of the industry, improve the situation and bring the segment to a new level of development. Experts use various tools for work, the total number of rating systems is more than 40 types.
Special attention is paid to corporate clients. The agency carries out research of each direction of activity, helps to reveal the reason of losses and to correct the given situation.
Moody’s opinion on the banking sector is considered authoritative. The company publishes financial stability ratings of the institution, where it takes into account its positions in domestic and foreign markets, diversification risks and assets.
