The Strategist

Fitch downgrades global GDP growth forecast for 2023

12/06/2022 - 06:22

According to a press statement from Fitch, the international rating agency reduced its forecast for global GDP growth in 2023 from 1.7% to 1.4%.

According to the press release, "world GDP growth predictions for 2023 have been lowered downward amid escalating central bank problems with inflation and a weaker outlook for China's real estate market."

The agency also stated that the forecast for U.S. GDP growth for the following year was revised from 0.5% to 0.2%. In addition, Fitch now anticipates 0.2% GDP growth in the euro zone rather than the 0.1% decline it had previously predicted. Fitch views the national regulators' raising of key rates as the primary factor impeding the expansion of the US and euro zone economies.

In addition, coronavirus limitations and a protracted real estate collapse, according to Fitch's projection, are limiting China's economic recovery. The same as before, growth is anticipated to fall to 2.8% this year and then recover to 4.1% in 2023 rather than the previously predicted 4.5%.