Fitch cuts world growth forecasts as inflation soars due to Ukraine war
|Fitch Ratings provided a grim global economic outlook amid soaring inflation, courtesy of the Russia-Ukraine war, which has stoked up oil prices.
Key takeaways
“Fitch Ratings has cut its world GDP growth forecast for 2022 by 0.7pp to 3.5%.”
“Eurozone GDP growth cut by 1.5pp to 3.0% and the US by 0.2pp to 3.5%.”
“We have lowered our forecast for world growth in 2023 by 0.2pp to 2.8 percent."
"This reflects the drag from higher energy prices and a faster pace of US interest rate hikes than anticipated.”
“Global inflation is back with a vengeance after an absence of at least two decades. This is starting to feel like an inflation regime change moment.”
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