Fitch Ratings has downgraded its forecast for global GDP growth in 2023 to 1.4% from 1.7%. The international rating agency said in a press release on Monday.
World GDP forecasts for 2023 have been revised downward again as central banks intensify their fight against inflation and China's real estate market prospects deteriorate, Fitch Ratings said in its published global economic outlook report (GEO).
Fitch also lowered its forecast for U.S. economic growth in 2023 to 0.2% from 0.5% as the pace of monetary tightening increases. China's 2023 GDP growth forecast was lowered to 4.1% from 4.5% as prospects for housing recovery weaken. Meanwhile, China's 2022 growth forecast remains at 2.8%, as rising COVID-19 cases put pressure on near-term activity.
The 2023 eurozone growth forecast is revised positive to 0.2% from -0.1% as Europe's gas crisis eases a bit, but a sharper ECB rate hike will put pressure on demand. The agency believes the risk of natural gas shortages in Europe has eased this winter as LNG imports rise and gas consumption declines. "But the crisis is far from over, and high wholesale gas prices continue to weigh on firms' costs and household budgets," it said.
Meanwhile, inflation recently reached 11 percent in the eurozone and the U.K. - and core inflation is rising. The agency estimates that overall inflation will fall significantly in 2023 as food and energy prices stabilize.