The Strategist

Moody's expects slowdown in global industrial development in 2020

12/19/2019 - 10:00

The international rating agency Moody's believes that the prospects for the development of global industry in 2020 remain negative due to the preservation of trade tension, which follows from a report by Moody's Investors Service.

"The prospects for the development of the global manufacturing sector in 2020 are negative. Slowing global economic growth and increasing trade tension will affect the income of manufacturing companies," the statement said.

The agency notes that the sector will be pressured by the risk associated with the supply and increase in the cost of raw materials.

According to Moody's, most companies will be able to record a slight increase in profits or even a sharp decline. The agency also predicts a 1% EBITDA growth in the sector. The GDP of the G20 countries, according to the release, may increase by 2.6%.

The release also notes that the agricultural, transportation and utilities sectors also have weak growth prospects. Next year, the aerospace market and the military-industrial complex will be most developed.