Home Finance Fitch’s predictions for global economic growth in 2017

Fitch’s predictions for global economic growth in 2017

22
0

The International Credit Rating Agency, Fitch Rating published its report “Global Credit Rating View 2017”. According to the report the outlook of global ratings in 2017 is weaker than 2016. The most notable changes are coming from the emerging economies.  Global economic growth is estimated to be 2.9 percent in 2017.

According to the report of Global Credit Rating View 2017, 21 percent of the countries which are rated by the credit rating agency have a negative outlook. In the report it is stated that the rise of the US dollar, global political instability and uncertainty, weakening in the global trade cause pressure on ratings. The emerging economies in the Middle East and Africa which are based on commodity exports still do not have the ability to deal with the changes in commodity prices.

According to the Fitch’s report, the International Financial Institutions will be affected positively if the United States takes the decision to increase interest rates.  On the other hand, the European Banks, especially in Italy and Portugal, are still suffering from the stagnation in economic growth.

In 2017, it is highlighted that the global economic growth will be about %2.9 being affected positively by rising investments in the United States, the ending of the recession in Brazil and Russia, and due to the expected expansion of global monetary policies.

Beside all these positive expectations for 2017, for the Europe and China, the predictions are not so good. It is reported that the growth rate in the Euro region will probably back off to 1.4% from 1.6%. China’s growth is estimated to fell down to 6.4% from 6.7%. Fitch also expects the oil prices stop to rise in 2017.

LEAVE A REPLY

Please enter your comment!
Please enter your name here