Moody's global macro outlook: EM countries finally trend up, China becomes more stable

"Global economic growth will be maintained through 2018, underpinned by solid underlying growth in advanced economies and a broadening recovery in emerging markets," Moody's Investors Service noted in its global macroeconomic outlook report for 2018-2019.

Key quotes

Moody's expects above-trend global GDP growth of 3.2% in 2018 and 3.1% in 2019, similar to 2017 and up from 2.5% growth in 2016.

Unlike in recent years, Moody's expects growth to be more broad-based and sustainable in the year ahead.

Growth in G20 advanced economies is expected to be stable, with growth of approximately 2.0% in 2017, 2018 and 2019, compared with 1.5% in 2016.

We are seeing growth broadening globally, with emerging market countries finally trending up and China becoming more stable.

Moody's expects that emerging market countries will grow at a rate of 5.4% in 2018, exceeding the forecasted 2017 growth rate of 5.0%.