International credit rating agency Fitch Ratings lowered its 2021 growth expectation for the global economy from 6 percent to 5.7 percent.
Fitch has released the December issue of its Global Economic Outlook Report. In the report, where the growth forecasts for the global economy were lowered, it was noted that the world economy is expected to grow by 5.7 percent this year and 4.2 percent in 2022. Fitch predicted that the global economy would grow by 6 percent in 2021 and 4.4 percent in 2022 in its forecasts announced in September.
Despite the downward revision, the global economy’s 2021 growth expectation pointed to the fastest growth rate since 1973 and mentioned that the global economy is doing well.
In the report, which stated that the strong recovery in global aggregate demand over the last year was not met with an equal improvement in production, it was stated that supply bottlenecks caused real gross domestic product (GDP) to increase less than expected in the third quarter of this year, while prices increased more than expected.
US Economy’s Growth Forecasts Revised Down
The report noted that the growth forecasts of economies such as the USA, Germany, and Japan for this year were lowered due to the supply chain disruptions experienced in the recent period in industrial production.
According to the growth forecast of the US economy for 2021 was reduced from 6.2 percent to 5.7 percent, it was reported that the country’s 2022 growth expectation was reduced from 3.9 percent to 3.7 percent.