Fitch cuts world growth forecasts as inflation soars due to Ukraine war

Fitch Ratings provided a grim global economic outlook amid soaring inflation, courtesy of the Russia-Ukraine war, which has stoked up oil prices.

Key takeaways

“Fitch Ratings has cut its world GDP growth forecast for 2022 by 0.7pp to 3.5%.”

“Eurozone GDP growth cut by 1.5pp to 3.0% and the US by 0.2pp to 3.5%.”

“We have lowered our forecast for world growth in 2023 by 0.2pp to 2.8 percent."

"This reflects the drag from higher energy prices and a faster pace of US interest rate hikes than anticipated.”

“Global inflation is back with a vengeance after an absence of at least two decades. This is starting to feel like an inflation regime change moment.”