Automotiv_September

Monthly automotive aftermarket magazine
Turkish economy expected to be affected
positively by US-China trade war
According to U.S.-based credit rating
agency Fitch Ratings, the trade war
between the U.S. and China may
positively impact the Turkish economy
in 2019 and 2020.
A statement released by Fitch
indicates that the growing impact of
the U.S.-China trade war may cause
global economic growth to fall to
2.8 in 2019. The credit rating agency
said, "The possible rise of the trade
tension due to the imposition of new
tariffs on the $2 trillion dollar global
trade flow may result in a 0.4 percent
contraction in the global expansion in
2019." In its June Global Economic
Outlook report, Fitch estimated that
the world economy might register a
3.2 percent expansion in 2019.
However, due to the trade wars, the
agency cut back its estimations to 2.8
percent. The agency also expressed
its expectation that the U.S.-China led
trade war, which continues to grow,
may not affect the Turkish economy
this year, but the Turkish economy
is likely to see a 0.1 percent and 0.2
percent rise in its growth in 2019 and
2020, respectively, as a positive impact
of the tension. The statement also
highlighted that if the U.S. imposes 25
percent tariffs on automotive imports
from China, these tariffs will likely have
reverberations on other economies.