You are currently viewing our desktop site, do you want to visit our Mobile web app instead?
Complete our online survey and
get 10% discount on our
Insider Gold annual subscription.
 Registered users can save articles to their personal articles list. Login here or sign up here

Trade war drag on world economy to fade in 2020: Goldman

Growth in China’s economy is forecast to continue slowing next year.
 

The trade war’s drag on the world’s largest two economies will gradually fade in 2020 as tariffs on imports from China have likely peaked, according to Goldman Sachs Group Inc.

The recent progress toward a partial trade deal and expectations of an extended truce implies that this drag will disappear, which will also benefit the global economy, Goldman Sachs economists led by Jan Hatzius wrote in a note dated November 18.

This assumes there is no further escalation of tariffs.

The trade war is currently subtracting roughly 0.5 percentage point from sequential growth in both the U.S. and China, according to Goldman’s estimates.

China’s economy has been on a gradual downward trajectory, with gross domestic product growth slowing further in the third quarter to 6%. Despite efforts by the government and central bank to stimulate the economy, growth is forecast to continue slowing to below 6% next year.

© 2019 Bloomberg L.P.
Get access to Moneyweb's financial intelligence and support quality journalism for only
R63/month or R630/year.
Sign up here, cancel at any time.

COMMENTS   0

You must be signed in to comment.

SIGN IN SIGN UP

LATEST CURRENCIES  

USD / ZAR
GBP / ZAR
EUR / ZAR

Podcasts

NEWSLETTERS WEB APP SHOP PORTFOLIO TOOL TRENDING CPD HUB

Follow us:

Search Articles:Advanced Search
Click a Company: