Moody's downgrades ratings of Russia, China, USA
The U.S. rating agency Moody's revised its outlook on Russia: zero growth is not expected, 0.5 or 1.5% economic decline was forecasted possible. The growth forecast for China, the U.S. and the whole G20 was also downgraded. Moody's believes that a new round of devaluation of the Russian ruble will increase the pressure on the weak performance of Russian banks and lead to an outflow of deposits. Due to the strengthening of the U.S. dollar and lower oil prices, Moody's downgraded the U.S. economic growth for 2016 from 2.8% to 2.6%. The GDP growth forecast in the G20 states in 2016 went down from 3.1% to 2.8%, while growth forecast for China's GDP was reduced from 6.5% to 6.3%. The drop in demand and production in China will affect the economies of its neighbors. ‘South Korea and Japan will face a weakening demand for their products exported to China, which remains the largest trading partner of both countries,’ – forecasts Moody's. However, South Korea's GDP growth will be at 2.5% in 2015 and 2016, Japan's GDP will grow by 0.5% this year and by 1% next year.