Fitch Ratings once again downgraded the global economic growth guidance for next year, citing intensified rate hikes from central banks as well as a deteriorating trend in the Chinese property market.
Fitch reduced the 2023 growth outlook by 0.3 percentage points to 1.4% for 2023, while seeing the United States economy barely in the positive territory. On the other hand, Chinese growth is projected to increase by 2.8% this year and surge an additional 4.1% in 2023. The Eurozone economy is also seen slightly expanding due to the energy crisis easing a bit.
The credit rating agency also said that the central banks in the US and Europe would continue hiking rates past original estimates. At the same time, recessions could be expected in the euro area and the UK this year, and in the US in the second half of 2023, the agency added.
