Fitch Ratings Inc. said on Wednesday it raised its estimate for 2023 global economic growth by 0.1 percentage point to 2.5%, citing "surprising resilience so far this year in the US, Japan and emerging markets (EM) excluding China."
Specifically, projections for the three regions have been increased by 0.8, 0.7 and 0.5 percentage points to 2%, 2% and 3.4%, respectively. Forecasts for China and the Eurozone suffered 0.8 and 0.2 percentage point cuts to 4.8% and 0.6%, respectively. On the other hand, the 2024 global projection was lowered by 0.2 percentage points to 1.9%.
Fitch described China's policy as "underwhelming," predicting that the United States "wage inflation will ease further as the [labor] market continues to cool" but that a "mild" recession will take place in the US in the first half of 2024 and in the United Kingdom in the second half of 2023. "The eurozone recovery has stalled... and now faces new external challenges," Fitch noted.
