Fitch Ratings Adjusts Global Growth Outlook

(MENAFN) Fitch Ratings, an international credit assessment organization, revised its global gross domestic product (GDP) expansion estimate upward from its prior projection on Tuesday, while highlighting indications of a cooling US economy and labor market.

"There is now evidence of an underlying US slowdown in ‘hard’ economic data and positive surprises on eurozone growth have partly reflected US tariff front-running," Fitch explained in its announcement.

Nevertheless, the institution underlined that worldwide economic progress is anticipated to "significantly" decelerate this year in comparison to last year’s results.

The overall global expansion rate is forecasted to decrease to 2.4% in the current year, down from 2.9% in the previous year, with an additional drop to 2.3% expected next year.

The outlook also suggested that the international economy could achieve a 2.6% growth rate by 2027.

"China’s forecast has been raised to 4.7% from 4.2%, the eurozone’s to 1.1% from 0.8%, and the US’s to 1.6% from 1.5%," the statement continued.

The agency also noted reduced unpredictability surrounding Washington’s tariff measures following a series of official declarations.

However, “greater clarity about US tariff hikes does not alter the fact that they are huge and will reduce global growth. And evidence of a slowdown in the US is now appearing in the hard data; it’s no longer just in the sentiment surveys,” remarked Brian Coulton, Chief Economist at Fitch.

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