BAKU, Azerbaijan, June 14. Global GDP growth rate forecast has been revised 0.6 percentage points down to 2.9 percent, Trend reports, citing the Global Economic Outlook from Fitch Ratings.
According to the report, global GDP growth projection for 2023 is also cut by 0.1 percentage points to 2.7 percent.
“The biggest revision is to China where we now expect growth to fall to 3.7 percent this year, down from 4.8 percent in March. We have revised down our growth forecasts for the US by 0.6 percentage points to 2.9 percent, and Eurozone - by 0.4 percentage points to 2.6 percent,” Fitch said.
As the report noted, COVID-19 lockdowns in China will add to the country’s GDP further fall, while high inflation rate in Europe “will drag on consumers’ real incomes”.
Meanwhile, the GDP growth forecast for the US stands at 1.5 percent in 2023, and 1.3 percent - in 2024.
“The US economy has near-term momentum, with consumer spending supported by strong growth in jobs and nominal wages. But growth is set to slow from mid-2023 to barely positive rates in quarterly terms on more aggressive monetary tightening. Historical experience points to a significant risk of a US recession in the wake of sharp monetary tightening,” Fitch said.
Moreover, Fitch Ratings expects Federal Reserve System of the US to raise the interest rates to 3 percent by the fourth quarter of 2022, and to 3.5 percent - by the first quarter of 2023.
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