Moody's: Global Sovereigns Have Stable Outlook for 2018

Moody's anticipates global GDP growth to exceed 3%, with most Asian sovereigns maintaining a stable outlook. Exceptions include a negative outlook for Sri Lanka and positive outlooks for Vietnam and Indonesia. Risks such as central bank stimulus withdrawal and potential inflation overshooting are highlighted, particularly affecting countries reliant on external financing. Interest rate shocks pose a threat to lower-rated sovereigns, though a gradual normalization of global policy rates is expected.

What is the expected global GDP growth rate according to Moody's?

• Between 2% and 3%

• Above 3%

• Below 2%

• Exactly 3%

Which country in Asia has a negative outlook according to Moody's?

• Thailand

• Sri Lanka

• Indonesia

• Vietnam

What is a major risk to the stable outlook of Asian sovereigns?

• Increase in global trade

• Rise in technology investments

• Pulling back of stimulus by central banks

• Decrease in oil prices

Which countries are more susceptible to interest rate shocks?

• Countries more reliant on external financing

• Countries with stable political environments

• Countries with high credit ratings

• Countries reliant on domestic financing

What is the current expectation for global policy rates?

• Rapid increase

• Slow gradual normalization

• Rapid decrease

• Immediate stabilization