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The forecast for the upcoming year was likewise reduced by 1 basis point to 1.7%.
"The economic outlook is being significantly impacted by the European gas crisis, high inflation, and a fast acceleration of global monetary tightening. Since publishing its Global Economic Outlook in June, Fitch Ratings has drastically cut its growth projections," the release reads.
The agency also added that GDP growth in the U.S. and the eurozone in annual terms will be fairly close to 0% next year. The eurozone and the United Kingdom are also expected to go into recession later this year, while the U.S. is expected to enter into a "moderate" recession in mid-2023.
In addition, according to the Fitch forecast, China's economic recovery is constrained by coronavirus restrictions and a prolonged recession in real estate. Growth is now projected to slow to 2.8% this year and recover only to 4.5% next year.
source: bloomberg.com
"The economic outlook is being significantly impacted by the European gas crisis, high inflation, and a fast acceleration of global monetary tightening. Since publishing its Global Economic Outlook in June, Fitch Ratings has drastically cut its growth projections," the release reads.
The agency also added that GDP growth in the U.S. and the eurozone in annual terms will be fairly close to 0% next year. The eurozone and the United Kingdom are also expected to go into recession later this year, while the U.S. is expected to enter into a "moderate" recession in mid-2023.
In addition, according to the Fitch forecast, China's economic recovery is constrained by coronavirus restrictions and a prolonged recession in real estate. Growth is now projected to slow to 2.8% this year and recover only to 4.5% next year.
source: bloomberg.com
