Fitch agency downgrades forecast for global GDP growth in 2022

Analysts at Fitch agency have revised their forecast for the growth rate of the global economy this year. It was downgraded by 0.7 percentage points to 3.5%. The agency’s press release notes that the decision to lower the forecast was made due to rising inflation and in connection with the aggravation of the geopolitical situation after the start of the Russian military operation in Ukraine. The agency’s forecast for 2022 GDP growth in the eurozone has been cut by 1.5 percentage points to 3%. The British economy may grow by 3.8% by the end of the year. Previously, it was expected to grow by 5%. Fitch’s outlook for the US economy has been changed slightly. It was lowered by 0.2 percentage points to 3.5%. Agency analysts also took into account the expected tightening of the Fed’s policy and the fact that it, apparently, will occur at a faster pace than previously thought. Fitch’s forecast for global GDP growth for 2023 has also been revised. 0.2 percentage points reduced it to 2.8%. The agency’s analysts warned that sanctions pressure on Russia would lead to higher energy prices and even higher inflation.

Source: xCritical.com