Fitch Cuts Global GDP Growth Forecast to 2.3% on US Trade War
Global Nominal GDP Growth Rate is Expected to Be BELOW 2.2% in 2026 as well. File | Photo Credit: Reuters
Fittch Rating Cut Global GDP Growth Forecast for 2025 to 2.3%, Down 0.3 Percentage Points as Us Tarif Hikes are “Rapidly Unfolding”, According to a Report Titled “Global Economic Outlook” Global Rating Agency.
The Global Economy Grew at a rate of 2.9% in 2024, and the agency had predicted it to grow by 2.6% in its December.
“There is great uncertainty about how far the us will go, but we think a reasonable base case assumption is that the us [effective tariff rate] ETR Rices to 18% This year, with large hikes on europe and the rest of the world implemented song. “
Global Nominal GDP Growth Rate is Expected to Be BELOW 2.2% in 2026 as well. The ratings agency cut forecast the most us, trimming it by 1.1 percenant points. Fitch estimated the growth rate at 1.7%, from 2.8% in 2024.
Fitch had estimated the gdp growth rate for the US to come in at 2.1% in 2025.
Besides the us, The GDPS of China, Eurozone and Emerging Economies are Expected to Grow Slower Than the Speed at which it has grown in 2024. Against a pace of 0.1% in 2024. However even this is lower than the establishment in the December outlook.
The Estimation was made on the assumption that the effective tariff rate (ETR) by the us to the rest of the world is 15% until 2026. For china however, the Etr is assumed to be at 35% and is expected to stay there with an upside risk until 2026.
India’s Outlook is better than the world average with an outlook of 6.3% for fiscal 2025 and 6.5% for financial year 2026, more or less in line with the governmentuates. The current fiscal growth estimate was slightly trimmed from the December Estimate of 6.4%. The Lower Exposure to External Trade is expected to insulate India from tarif action to some expert.
“These Forecasts are Little Changed from the December Geo. Reliance on External Demand, “The fitch report read.
Published – March 19, 2025 07:07 pm IST
