Mubasher: Moody's Investors Service expected global credit condition to stay "uneven" in 2017 amid stabilizing growth, low-interest rates, according to a report on Wednesday.
This uncertain outlook is substantiated by a weak trade recovery, political risks and concerns over the efficacy of monetary policy, said Moody's in its report named "Cross-Sector -- Global Credit 2017 Outlook: Global Credit Conditions to Remain Uneven, Despite Stabilizing Growth".
"Global credit conditions will remain uneven in 2017, despite a stabilization of growth worldwide," said Anne Van Praagh, Moody's Managing Director - Global Strategy and Research and the report's co-author. "There are a number of challenges, including concerns over the efficacy of monetary policy and rising political risks, which cast a shadow over the global credit outlook."
The global economic growth is likely to stabilize in 2017 at 3%, compared with a 2.6% estimate in 2016, the report highlighted as a result that "advanced economies achieve steady growth and some emerging markets recover from recent slumps. Average commodity prices are also likely to be higher next year."
This annual report examines six areas: global economic growth, monetary policy, political risk, slow trade recovery, climate change, and technological innovation and disruption.
