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Global economic growth will remain solid in the near term, but early indications suggest it has peaked, a recent report from New York-based Moody’s Investors Service.

While the economic performance of many of the G20 economies is expected to remain solid in the near term, “the synchronous acceleration of growth heading into 2018 is now giving way to diverging trends,” the report states.

Overall, Moody’s expects the G20 countries to grow by 3.3% in 2018 and 3.1% in 2019. Advanced economies are expected to produce 2.3% growth in 2018, slipping to 2% in 2019, while and emerging markets will remain the growth drivers, at 5.1% in both 2018 and 2019.

“U.S. trade tensions with China will worsen this year, weighing on global growth in 2019,” the report states, and the intensifying trade tensions and heightened tariffs, “represent a disruptive downside risk to our baseline forecasts.”

Factors such as trade worries, elevated oil prices and tighter financial conditions are already weighing on economic activity in many major emerging markets, such as Turkey, Argentina and Brazil.

“Overall, emerging market countries remain inherently vulnerable to the risk of capital outflows associated with tightening global liquidity as advanced economy central banks reverse their quantitative easing measures,” the report states. “Escalating trade frictions further add to overall uncertainty. Those with weak fundamentals and relatively shallow, but open, capital markets are particularly vulnerable.”