Experts at the international rating agency Fitch have detected a good omen for the global economy and upgraded the growth forecast for 2024 to 2.6%. This is an excellent incentive for investments in global stock markets!
According to Fitch analysts, the growth forecast for the world economy for the current year has been raised to 2.6% from 2.4%. This means an increase of 0.2%. Analysts found it appropriate to improve their forecast due to several factors, including the recovery of China's export potential and rising domestic demand in emerging markets.
Besides, the revision of the previous March forecast was influenced by improved prospects for the EU GDP. The rating agency now expects the European economy to grow by 0.8% throughout the whole of 2024. Earlier, the GDP rate was projected to increase by a modest 0.6%.
However, there is a fly in the ointment. The pace of EU GDP recovery significantly lags behind that of the United States. According to Fitch analysts, the US economy is likely to expand by 2.1% this year. Currently, economic growth in the US is slowing, albeit marginally, the agency adds.
Interestingly, the European Commission considerably improved its growth forecast for Russia's GDP in 2024 from 1.6% to 2.9%. Regarding inflation, European analysts expect Russia’s annual CPI to stand at 6.6% in 2024 and it might decline to 4.5% in 2025.