3 factors to sustain markets in near term as global growth slows

By Michelle Zhu / The Edge Singapore | December 11, 2018 4:58 PM SGT
SINGAPORE (Dec 11): Fitch Solutions has revised its global growth forecast for 2019 downwards by 0.1 percentage point to 3% to accentuate its view that global growth will slow over the coming years after peaking at 3.4% in 2018.
This comes as the primary distributor of Fitch Ratings content revises its growth forecasts downwards for both emerging and developed markets, with Argentina, Malaysia, Hong Kong and Thailand seeing the largest negative revisions for 2018-2019.
Going forward, the agency believes heightened financial market volatility and risk aversion will remain in play across global markets from now till 2019, skewing risks to the downside for emerging markets (EMs) in particular, which will remain vulnerable to bouts of risk aversion and safe haven assets in 2019.
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