“Incoming data, an earlier opening of the services sector in the US and Europe, and the impact of support measures underpin the revision,” the agency said in a statement. Global GDP growth will slow to 4.3% in 2022, the agency said.
Fitch explains that a faster-than-expected global economic recovery supports prices, but a number of factors will depress the rate of inflation in 2022.
The outlook was improved for most advanced economies: GDP growth in the US is now expected to be 6.8% this year rather than 6.2%, in the eurozone – at 5% instead of 4.7%, in the UK – at 6.6% versus 5% in March.
Meanwhile, the forecast for Japan has been worsened to 2.5% from 3.6%, while the forecast for China remains at 8.4%, the report said. Growth in developing countries excluding China is forecast at 5.9%, down from the 6% the agency had previously expected.
source: fitchratings.com
