Experts from Fitch Ratings warn that the global economy has bleak prospects due to grave geopolitical factors such as the escalation of the trade war between the US and China and the growing likelihood of a no-deal Brexit. The reputable rating agency does not rule out the long-lasting fallout from such headwinds. The UK economy could slip into deep recession in 2020 if the worst-case scenario comes true. Experts are certain that ongoing turbulence dents the outlook for the eurozone’s economy, especially in case of a hard Brexit. Another obstacle to healthy economic expansion in the euro area is a slowdown in China’s economy.

Fitch Ratings downgraded the forecast of China’s GDP growth to 6.1% for this year and to 5.7% for 2020 versus 6.2% and 6.0% respectively in the previous forecast. Interestingly, the agency expects steady economic performance in the countries of the Asia-Pacific region.

Besides, pundits from Fitch Ratings shared their viewpoint on further monetary policy of the leading central banks. They project the Federal Reserve to lower interest rates once again by 25 basis points in December 2019 and put them on hold until the end of 2020.