Tags: Fitch | Global | Growth

CNBC: Fitch Lowers Global Growth Forecasts

By    |   Monday, 03 Oct 2011 01:18 PM

Fitch ratings agency revised down its growth forecasts for all major advanced economies, and said it expected growth in emerging economies to slow as well, CNBC reported.

Fitch revised world growth based on market exchange rates to 2.6 percent in 2011 compared with 3.1 percent previously, says CNBC. It forecasts 2.7 percent in 2012 compared with 3.4 percent previously.

Reuters explained the new figures saying as “while temporary factors are still playing a role in suppressing economic activity, the recent intensification of financial market volatility and fiscal policy uncertainty has eroded confidence. This, in turn, undermines private consumption and business investment growth.”

Bloomberg linked recent stock-market volatility to Europe's debt crisis, declining home values and a lack of job creation.

Those following what the economists and analysts have to say should realize that these professionals seem to reiterate beliefs that a large part of the current economic downturn is being driven by uncertainty and fear. On more than one occasion there have been calls for a showing of some political leadership, which many believe will help to improve economic conditions that are growing increasingly dim.

Despite slowing growth, according to CNBC, Fitch is not predicting the worst case scenario...yet.

“Fitch does not project a 'double-dip' in its baseline global economic projections. However, the likelihood of a recession has increased...” CNBC reported Maria Malas-Mroueh, director of Fitch's Sovereign team as saying in a note.

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Fitch ratings agency revised down its growth forecasts for all major advanced economies, and said it expected growth in emerging economies to slow as well, CNBC reported. Fitch revised world growth based on market exchange rates to 2.6 percent in 2011 compared with 3.1...
Fitch,Global,Growth
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2011-18-03
Monday, 03 Oct 2011 01:18 PM
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