Fitch Cuts Forecast for Global Growth

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By Trey Thoelcke Published
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Fitch Ratings has pared back its forecasts for global GDP growth to 2.1%, citing “persistent weakness” in the global recovery. That is down from Fitch’s June view of 2.2%. For 2013, the forecast was reduced to 2.6% from 2.8%.

Fitch lowered its 2013 GDP growth expectations for the United States to 2.3%, but kept its 2012 forecast at 2.2%. Persistently high unemployment and the uncertainty surrounding fiscal policy are expected to continue to challenge the U.S. economy.

The U.S. also said today that growth in the second quarter was 1.3%, down from a previous estimate of 1.7%, due to less consumer spending and business investment than previously estimated.

Fitch predicts the eurozone economy will contract 0.5% this year. Growth of only 0.3% and 1.4% is predicted for the next two years.

The agency expects emerging markets to post higher GDP numbers, despite also facing growth challenges. For China, Fitch forecasts growth of 7.8% in 2012 and by 8.2% in 2013. In India and Brazil, after a cyclical trough in 2012, economic growth should improve in 2013. Russia is expected to see steady growth at about 3.5% in this year and the next.

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About the Author Trey Thoelcke →

Trey has been an editor and author at 24/7 Wall St. for more than a decade, where he has published thousands of articles analyzing corporate earnings, dividend stocks, short interest, insider buying, private equity, and market trends. His comprehensive coverage spans the full spectrum of financial markets, from blue-chip stalwarts to emerging growth companies.

Beyond 24/7 Wall St., Trey has created and edited financial content for Benzinga and AOL's BloggingStocks, contributing additional hundreds of articles to the investment community. He previously oversaw the 24/7 Climate Insights site, managing editorial operations and content strategy, and currently oversees and creates content for My Investing News.

Trey's editorial expertise extends across multiple publishing environments. He served as production editor at Dearborn Financial Publishing and development editor at Kaplan, where he helped shape financial education materials. Earlier in his career, he worked as a writer-producer at SVE. His freelance editing portfolio includes work for prestigious clients such as Sage Publications, Rand McNally, the Institute for Supply Management, the American Library Association, Eggplant Literary Productions, and Spiegel.

Outside of financial journalism, Trey writes fiction and has been an active member of the writing community for years, overseeing a long-running critique group and moderating workshop sessions at regional conventions. He lives with his family in an old house in the Midwest.

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