Fitch Ratings forecast North American sovereign bonds will stable in 2019, with economic growth sluggish in the region but staying above long-term potential.
On the other side, agency expects the Fed to raise rates by 75 basis points next year. Fitch points out that the decline in the uncertainties NAFTA would be of particular benefit to Canada.
In the United States, the Agency believes that the acceleration of the medium-term deficit may result in negative action, and it is unlikely that any action o mitigate impact on deficit of growing mandatory spending is also unlikely in US. But the Democrats' victory in the House of Representatives has reduced the risk of tax cuts again.
Finally, Fitch expects US government debt to increase by more than 100% in fiscal year 2019 but not at a rapid pace.
