Home / Knowledge / News / Textiles / Moody's revises G20 economic growth forecast downwards
Moody's revises G20 economic growth forecast downwards
02
Sep '15
Moody's Investors Service has revised downward its forecast for GDP growth in the G20 economies to 2.8 per cent next year, from 3.1 per cent. In a report titled "Downward Revisions to 2016 Global Economic Outlook," Moody's says that the revision mainly reflects the impact of a more marked slowdown now forecast in China and more prolonged negative effects of low commodity prices on G20 producers than earlier expected.

Moody's has slightly revised downwards its GDP growth forecast for China in 2016 to 6.3 per cent, from 6.5 per cent previously. Recently published economic indicators show that China's slowdown in exports and investment has continued into Q3 2015. In addition, signs that employment growth is weakening point to a more marked and broadly-based deceleration in the Chinese economy than previously expected.

Ongoing policy support from the Chinese government is likely to only partly offset the underlying slowdown in the Chinese economy, according to the rating agency.

"Slower growth in China makes a significant rebound in commodity prices in the near term unlikely. A more prolonged period of low commodity prices will lead to muted export revenues and investment for commodity-exporting G20 economies." says Marie Diron, a senior vice president at Moody's.

Moody's now expects negative GDP growth in 2016 in Brazil and Russia, extending the 2015 recessions. The recent fall in commodity prices and further depreciation of the currencies exacerbate an already unfavourable domestic economic environment in both countries. At -1 per cent/0 per cent for Brazil and -1.5 per cent/-0.5 per cent for Russia Moody's 2016 forecast ranges are now 0.5 and 1 percentage point lower than in the previous forecast.

Korea and Japan will face dampened demand for their manufactured goods exports from China. More generally, a more marked slowdown in China, a major trade partner for both economies, will likely weigh on corporates' and consumers' willingness and ability to spend, hampering domestic demand. In Korea, the rating agency forecasts GDP growth of around 2.5 per cent in 2015 and 2016, while in Japan GDP it forecasts growth of around 0.5 per cent and 1 per cent in 2015 and 2016 respectively.

The trade linkages between China and the US and Europe are limited, despite a rapid increase in trade over the past 15 years, according to Moody's. The slight downward revision to the US forecast in 2016, to 2.6 per cent from 2.8 per cent previously, is accounted for by more prolonged negative effects of the stronger dollar and lower oil prices than previously expected.

The report also noted that while the broad-based equity price falls could have a negative impact on investor and consumer sentiment, they will not have a direct significant impact on economic activity in most countries, including in China. (SH)

Fibre2Fashion News Desk – India


Must ReadView All

May 31 deadline for registration of chemicals under REACH

Textiles | On 23rd May 2018

May 31 deadline for registration of chemicals under REACH

May 31 is the final deadline for companies to register all chemicals...

US cotton production projected to decline in 2018: USDA

Textiles | On 23rd May 2018

US cotton production projected to decline in 2018: USDA

US cotton production is forecast at 19.5 million bales, nearly 7 per...

Pakistan's textile exports up 8.13% in July-April FY18

Textiles | On 23rd May 2018

Pakistan's textile exports up 8.13% in July-April FY18

The value of textile and garment exports from Pakistan increased by...

Interviews View All

Headhonchos
Indian textile value chain

Adopt innovative techniques, go for automisation rather than being...

Abhimanyu Singh Rathore & Barbara Anna Kosiorek
Kannbar

‘Blending cultures is the true beauty of fashion, where one’s imagination...

Pratik Bachkaniwala
Palod Himson Machines

Fabric processing machines are picking up

John Kelley

Textile Events is one of the largest textile fair in the United Kingdom,...

Vikas Banduke

Softech Controls Private Limited (SCPL) is a part of the Cotmac Group, an...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Kai Poehler
Voith Paper GmbH & Co. KG

The glass mat industry is growing by five to eight per cent annually. Kai...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Adriano Goldschmied
AG Jeans

The hype around 'designer jeans' was created by him. And the new wave of...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Karan Arora
Karan Arora

Bridal couture created with rich Indian heritage, exquisite craftsmanship...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

Leave your Comments


May 2018

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Advanced Search