Fitch raises 2024 global growth forecast to 3%, warns of inflation risks

Posted on June 21, 2024   |  

Fitch Ratings has increased its 2024 global growth forecast to 2.6%, up from 2.4%, due to stronger confidence in Europe, improved Chinese exports, and better domestic demand in emerging markets (excluding China).

The US growth forecast for 2024 remains steady at 2.1%.

Eurozone growth for 2024 has been adjusted upwards to 0.8%, reflecting a more optimistic outlook.

Fitch has also raised China's 2024 growth forecast to 4.8%, up from 4.5%.

For 2025, Fitch expects global growth to decrease slightly to 2.4%, with US growth slowing to 1.5% and Eurozone growth increasing to 1.5%.

China’s growth is predicted to fall to 4.5% in 2025 due to a slowdown in exports and government spending.

Europe’s recovery is strengthening as energy prices stabilize, German industries recover, and higher real wages boost household spending.