Fitch Raises Global Economic Growth Forecast – Breaking News
Fitch’s Global Economic Outlook Report for March has been released with the headline “Growth Outlook Is Improving, But Inflation Continues”. The report highlights key changes in economic forecasts and trends around the world.
One of the key points in the report is the increase in the global growth forecast for this year to 2.4 percent, up by 0.3 points. This upward revision is mainly driven by the improved growth forecast for the US economy, which has been revised from 1.2 percent to 2.1 percent. However, China’s growth forecast has been revised downwards from 4.6 percent to 2.1 percent.
Emerging markets, excluding China, have also seen an increase in growth forecasts by 0.1 point to 3.2 percent. Countries like India, Russia, and Brazil have all seen growth forecast revisions in a positive direction.
Looking ahead, Fitch maintains its expectation that the world economy will grow by 2.5 percent in 2025. While the Euro Zone is expected to recover with an increase in real wages and consumption, the growth of the USA is projected to slow down.
The report also anticipates three interest rate cuts from both the US Federal Reserve (Fed) and the European Central Bank (ECB) by the end of the year, totaling 75 basis points. However, both central banks are cautious and want to see more evidence of permanent inflation declines before implementing policy easing measures.
In the report, Turkey’s economic growth forecast for this year has been increased to 2.8 percent, up from the previous forecast of 2.5 percent. The report attributes this growth to increased private consumption and economic momentum in the country.
Overall, the Global Economic Outlook Report by Fitch paints a picture of improving growth prospects globally, with some key regions and countries showing positive trends while others face challenges. It will be important to monitor these developments as the year progresses.
