Fitch: Dispute between the US and China will slow world GDP growth

Fitch: Спор США и Китая замедлит рост мирового ВВП

The trade war has on the world economy

The Agency has revised its forecast of global GDP growth in connection with a trade war between China and the United States.

International rating Agency Fitch has upgraded the forecast of growth of world GDP in the escalation of a trade war between China and the United States. This is stated in the review, Fitch, says Mirror weeks.

It is expected that the growth rate of world GDP will decline in 2019 by 0.1 percentage points (PP), to 3.1%.

“Our forecast now takes into account the recent significant escalation in trade restrictions between the U.S. and China, the forecast for growth of China’s economy in 2019, downgraded 0.2 percentage points to 6.1%, while the forecast for global growth by 0.1 PP in comparison with the June forecast to 3.1 percent,” writes Fitch.

In General, the Agency expects to accelerate the pace of global GDP growth to 3.3%, or 0.1%, compared with 2017 year.

The GDP growth also increased by 0.1 percentage points to 2.9% and the growth forecast for the Eurozone countries decreased by 0.3 percentage points to 2%, said Fitch.

We will remind, on September 18, the President of the United States Donald trump announced the introduction from September 24 new tariffs on Chinese goods worth $200 billion By the end of 2018 tariff rate will be 10%, but in 2019 will rise to 25%.

China responded with tariffs on American goods worth $60 billion with a tariff rate of 5% and 10%.

Before that, the country exchanged duties in August.


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