The systemic risks to this forecast may stem from shifts in US trade policies, risks to global financial markets and emerging market economies if US interest rates were to rise faster than anticipated and/or the US dollar were to appreciate sharply.
Also there could be risks of a sudden and sharp deceleration in China and political and fragmentation risks in the EU and the euro area, Moody’s said.
In the report titled ‘Modest Acceleration in the Global Economy, but Shifting US Policies Inject Uncertainty’, Moody’s said there is a high risk of a significant protectionist shift in US trade policy and could inflict lasting damage to the global economy.
