Global ratings agency Fitch Ratings lowers growth forecast for global economy by 0.6% since its March Global Economic Outlook to 2.9% for 2022 as inflation pressures heighten.
The agency lowered its world GDP growth forecast for 2023 by 0.1% to 2.7%. The biggest revision is to China where growth expected to fall to 3.7% this year, down from 4.8% in March. It also revised down its growth forecasts for the US by 0.6% to 2.9% and eurozone by 0.4% to 2.6%. Global inflationary pressures continue to grow with increasingly adverse effects on economic growth prospects. Recent lockdowns in China are increasing pressure on global supply chains.
Energy and food supply disruptions due to the war in Ukraine are increasingly affecting European inflation. Inflation pressures are also building in the services sector, particularly in the US and UK, where tight labour markets are boosting nominal wage growth. Fitch has revised up its inflation forecasts widely and sharply, particularly for Europe in 2H22.
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