Moody`s outlines the main risk factors for the global economy – Kommersant

The global economy will continue to slow down in the near future, one of the reasons for this may be the persistence of a relatively high level of inflation. This was stated by the head of the Moody`s rating agency for sovereign and subsovereign risks, Marie Deeron, in an interview with the TV channel CNBC.

She said the slowdown in economic growth is due to three main factors: the persistence of high interest rates, the tense situation in the financial sector and the slowdown in China. Ms. Deeron notes that although central banks in various countries have managed to create a “disinflationary trend” by raising rates, inflationary risks remain high. “There is still a risk that inflation will be more difficult to overcome than it seems now, and this will lead to a longer period of slow growth,” she said.

Tensions in the financial sector are also associated with high rates. “We see that banks have been able to weather the period of high rates, which has had some positive impact on profitability, but a business adjustment is needed to continue attracting deposits,” said Ms. Deeron. “There may be pockets of tension that have not yet emerged, but which may materialize later this year or next.”

Marie Deeron also noted that Moody`s does not expect a quick recovery in Chinese economic growth, most likely, “China’s relatively slow growth will have consequences for the entire region.”

At the same time, according to the Moody`s expert, with a general slowdown in the world, there may be “foci of stability”, for example, the agency is seeing “relatively stable growth and favorable conditions in markets such as India and Indonesia.”

Yana Rozhdestvenskaya