INSUBCONTINENT EXCLUSIVE:
in 2020 will weaken as a result of growing risks of an economic downturn, trade policy uncertainty and the effects of an unpredictable
recession risks are building, the report said.The global economy has witnessed the lowest global growth in 2019 since the 2009
recession.Risks will be centered around US-China trade disputes, Brexit-related uncertainty and the escalation of other bilateral disputes
At the sector level, spillover effects from trade frictions will drive shifts in global supply chains and weigh on investment decisions,
Moody's noted.Furthermore, sporadic episodes of heightened financial market volatility will flare up as long as trade uncertainty
lingers.Other risks to the global economy relate to high leverage and the historically high number of debt issuers with weak credit quality
accessing the credit markets."Recession risks will remain elevated in Europe and the US, while in China domestic rebalancing will continue
to create challenges in maintaining the country's rapid growth," Moody's noted.Moody's expects interest rates to remain low and yield
curves to remain flat for several years going forward, with mixed credit effects by sector.Low rates will keep borrowing costs attractive
for sovereigns and companies but will create a difficult operating environment for banks and insurers
Moreover, low rates will also continue to encourage risk taking as investors reach for yield.Get Breaking news, live coverage, and Latest
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