Consumer demand remained balanced, and Fitch upgraded its global economic growth forecast for this year

By: Trademagazin Date: 2023. 03. 13. 11:17

The international credit rating agency Fitch Ratings has upgraded its forecast for this year’s global economic growth, based on the positive impact of the lifting of Chinese coronavirus restrictions and the significant easing of the European gas crisis, as well as the fact that American consumer demand in the United States has remained surprisingly balanced.

According to the latest forecast posted on Fitch’s website, global GDP will grow by 2 percent this year compared to the 1.4 percent expansion expected in December.

The international credit rating agency changed its growth forecast for the Chinese economy for this year from 4.1 percent to 5.2 percent, that of the Eurozone from 0.2 percent to 0.8 percent, and that of the United States from 0.2 percent to 1 percent.

At the same time, Fitch lowered its global GDP growth forecast for 2024 from 2.7 percent to 2.4 percent due to the delayed effects of the rapid rate hikes by the US Fed and the European Central Bank (ECB). Fitch expects the Fed rate to peak at 5.5 percent and the key ECB lending rate at 4 percent, likely to reach this level in June. Currently, the Fed interest rate is 4.5-4.75 percent, and the interest rate on ECB loans is 3 percent.