1/16, 5:06 PM (Source: TeleTrader)
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US-China trade deal backs global growth - Fitch

One of the three biggest American rating agencies, Fitch Ratings, stated on Thursday that the recently signed phase one trade deal between the United States and China will boost the confidence among businesses and support the stabilization of the world economic growth, adding the agreement's impact will depend on its implementation.

"The trade deal reinforces our expectation that global growth will stabilize this year," Fitch said in the statement. Precisely, it forecast that the Chinese economy will achieve a 5.9% growth in 2020, which will help the global growth increase of 2.6%. It pointed out that global growth will also depend on which states will be affected by the new trade circumstances.

Just before the deal was signed, US Treasury Department removed China from the list of designated currency manipulators, while Treasury's Secretary Steven Mnuchin announced the US will cancel additional tariffs to China in the second phase of the trade agreement.

Breaking the News / ND