Global Economic Outlook
What’s in the news?
- Fitch Ratings, a leading credit rating agency, has released its Global Economic Outlook (GEO).
- Note: GEO is different from the World Economic Outlook released by the International Monetary Fund.
Highlights of the Report
- The report projected global GDP to contract 4.4% in the current year, but revised upwards China’s growth estimate to 2.7% for 2020. This would be more than twice as deep as the great recession in 2009.
- Fitch Ratings cut its 2020 GDP forecast for emerging markets, excluding China, to (-)5.7%, from (-)4.7% estimated in June.
India’s position
- Fitch has slashed India’s growth projection to (-)10.5% from (-)5% estimated earlier after official data released last week showed the April-June 2020 quarter GDP contracted by 23.9%.
- The report noted that India imposed one of the most stringent lockdowns worldwide in April-June and domestic demand fell massively. Limited fiscal support, fragilities in the financial system, and a continued rise in virus cases hamper a rapid normalisation in activity.
- Fitch revised China’s GDP growth forecast to 2.7%, from 1.2% in June, following the stronger-than-expected April-June outturn and continuing recoveries in investment, housing and exports.
Reference:
Subscribe
Login
0 Comments