New Telegraph

Fitch: Global growth outlook improves, but rate hike impact looms

Fitch Ratings has said that although global growth prospects for 2023 have improved significantly since December, the impacts of rate hikes on the real economy still lie ahead and are likely to push the US economy into recession later this year. The credit rating agency, which stated this in its latest Global Economic Outlook (GEO) report, disclosed that the improvement in the nearterm outlook reflects China’s post-Covid-19 reopening, a material easing of the European natural gas crisis, and surprising near-term resilience in US consumer demand. This is the first upgrade to Fitch’s yearahead world growth forecasts since the start of the Russia-Ukraine war. According to a statement released by the agency, “Fitch now forecasts world growth in 2023 at 2.0 per cent, revised up from 1.4 per cent in the December 2022 GEO. We have raised China’s 2023 growth forecast to 5.2 per cent from 4.1 per cent in December, eurozone growth to 0.8 per cent from 0.2 per cent and US growth to 1.0 per cent from 0.2 per cent. “But we have lowered global growth in 2024 to 2.4 per cent from 2.7 per cent to reflect the lagged impact of rapid Fed and ECB interest rate hikes.” “Central banks are now taking away the punchbowl quite quickly. It is only a matter of time before the impact on the real economy becomes much more visible,” said Brian Coulton, Chief Economist at Fitch Ratings.

Read Previous

As producer, I’m a problem solver –Judith Audu

Read Next

‘FG’s measures to increase non-oil revenue boost VAT collections’

Leave a Reply

Your email address will not be published. Required fields are marked *