Fitch has improved its global GDP growth forecast for this year

Despite the revision, the growth expected for this year is still below last year’s 2.9 percent.

The credit rating agency has revised its forecast for China’s GDP growth from 4.2 percent to 4.7 percent, the eurozone’s from 0.8 percent to 1.1 percent, and the United States’ from 1.5 percent to 1.6 percent.

According to the report’s authors, the US tariff hike has had a modest impact on US inflation data so far, as the impact of higher tariffs has been “partly absorbed” by corporate profits. However, they expect companies to be more active in passing on the higher costs to consumers in the future. Fitch warned that expected higher inflation will negatively impact consumer spending in the United States.

Fitch raised its forecast for global GDP growth in 2026 by 0.1 percentage point to 2.3 percent.