A NOTABLE pick up in the US economy and “resilient” growth in China are cause for confidence for the remainder of 2019, mining giant BHP reports.
The mining company has released its results for the 12-months to 1 July 2019, noting a 2% increase in underlying attributable profit to $9.1bn.
According to BHP, the global economy grew by around 3.75% in the 2018 calendar year, with a notable pick up in the US economy, and resilient growth in China.
“We expect global growth to register near the lower end of a range of 3.25% to 3.75% for the 2019 calendar year,” BHP stated.
The mining giant predicted Chinese economic growth to slow modestly in the 2019 calendar year to around 6.25%.
“The negative impact of weaker exports is expected to be partially offset by easier monetary and fiscal policy,” BHP stated.
“China’s policymakers are likely to seek a balance between the pursuit of reform and maintenance of macroeconomic and financial stability.”
Over the longer term, BHP predicted China’s economic growth rate to decelerate as the working age population fell and capital stock matured.
BHP noted the US performed strongly in the 2018 calendar year but near-term prospects were less certain.
“The European and Japanese economies have slowed and we expect growth to be modest next year. In India, growth prospects remain solid,” BHP reported.