Fitch Ratings raises global growth forecast to 2.4% from 2.1%

By Ovunc Kutlu

ISTANBUL (AA) - Fitch Ratings has raised its global economic growth forecast for 2024 by 0.3 percentage points to 2.4% from 2.1%.

The rating agency said the revision follows moving up its US economic growth forecast to 2.1% from 1.2% in its December 2023 Global Economic Outlook.

"The revision to the US outweighs a marginal cut to our China 2024 growth forecast - to 4.5% from 4.6% - and a small revision to our eurozone forecast, to 0.6% from 0.7%," the agency said in its latest Global Economic Outlook released Wednesday.

"An unprecedented pro-cyclical widening in the US fiscal deficit in 2023 boosted domestic demand and helped explain the surprising resilience of GDP growth," it said. "But we expect the fiscal impulse to fade this year and household income growth to slow."

Fitch also revised up the Turkish economy's growth forecast to 2.8% from 2.5% for this year, expecting it to expand 3.1% next year.