Fitch Ratings has lowered its global GDP growth forecast for 2023 from 1.7% to 1.4%. The agency stated in its report on global economic outlook: "The global GDP projections for 2023 have been revised downward again as central banks intensify their fight against inflation, and due to poor expectations regarding the real estate market in China." It also reduced its forecast for U.S. economic growth in 2023 from 0.5% to 0.2% "amid the increasing pace of monetary tightening." Furthermore, it downgraded its forecast for Chinese GDP growth in 2023 from 4.5% to 4.1% due to "weak prospects for the recovery of residential construction."
The growth forecasts for the Eurozone in 2023 have been increased to 0.2% from 0.1% as the European gas crisis has slightly eased, but the European Central Bank's interest rate hike will pressure demand. The agency believes that the risk of a natural gas shortage in Europe this winter has decreased with rising LNG imports and reduced gas consumption. It added: "However, the crisis is not over yet, and high wholesale gas prices still weigh heavily on businesses and households."
