Fitch cuts world growth forecasts as inflation soars due to Ukraine war

Dhwani Mehta FXStreet

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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Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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