According to a global rating agency, the Eurozone and the United Kingdom are expected to enter recessions later this year, while the United States is expected to experience a mild recession in 2023.
Fitch Ratings has reduced its global economic growth forecasts but increased its forecast for the Turkish economy, saying it could grow by 5.2 percent in 2022.
According to a report released on Wednesday by the US-based firm, the global rating agency expects global GDP to grow 2.4 percent in 2022, down 0.5 percentage points from its June estimate of 2.9 percent.
The global economy is expected to grow by 1.7 percent in 2023, down from the previous forecast of 2.7 percent.
“We’ve had something of a perfect storm for the global economy in recent months, with the gas crisis in Europe, a sharp acceleration in interest rate hikes and a deepening property slump in China,” chief economist Brian Coulton said in the report.
“The forecast now assumes a full or near complete shut-off of Russian pipeline gas to Europe. Despite EU efforts to find alternatives, total EU gas supply will fall significantly in the near term, with impacts felt through industrial supply chains,” the report noted.
The Eurozone and the UK are expected to enter recessions later this year, while it forecast the US economy will suffer a mild recession in 2023.
The eurozone economy is expected to grow 2.6 percent in 2022 but contract 0.1 percent in 2023, a drop of 0.3 and 2.2 percentage points, respectively, from the June forecast due to “the impact of the natural gas crisis.”
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