• About
  • Advertise
  • Privacy Policy
  • Contact
Tuesday, January 31, 2023
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Fitch Cuts Global Growth Forecast As Inflation Intensifies Due To War

March 23, 2022
Stephen KotochiebyStephen Kotochie
in Around the Globe
0
Fitch Cuts Global Growth Forecast As Inflation Intensifies Due To War

Fitch Ratings

Fitch Ratings has cut its growth forecast for the global economy by 0.7 percentage points to 3.5% in 2022 and made a sharp upward revision to inflation forecasts in its March 2022 Global Economic Outlook. It also cut world growth for 2023 by 0.2 percentage points to 2.8%.

According to Fitch, the outlook for global GDP growth has deteriorated significantly as inflation challenges intensify and Russia’s invasion of Ukraine threatens global energy supplies.

The rating agency cut Eurozone’s GDP forecast by 1.5 percentage points to 3.0% and the US by 0.2 percentage points to 3.5%. This, according to Fitch, reflects the drag from higher energy prices but also a faster pace of US interest rate hikes than previously anticipated.

RelatedPosts

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022

Hipkins Sworn In As New Zealand’s Prime Minister

S&P Global Projects ‘Negative Outlook’ For Traditional Asset Managers

“Global inflation is back with a vengeance after an absence of at least two decades. This is starting to feel like an inflation regime change moment”, Brian Coulton, Chief Economist at Fitch Ratings said.

A potentially huge global supply shock that will reduce growth and push up inflation is hitting the post-Covid-19 pandemic recovery.  Russia’s invasion of Ukraine and the economic sanctions on Russia that have followed have put global energy supplies at risk and sanctions seem unlikely to be rescinded any time soon, Fitch stated.

3500

“Russia supplies around 10% of the world’s energy, including 17% of its natural gas and 12% of its oil. The jump in oil and gas prices will add to industry costs and reduce consumer real incomes. Outright shortages and energy rationing are possible in Europe if there is an abrupt halt to Russian supply. Higher energy prices are a given”.

Fitch

Risk of rising inflation

According to Fitch, Russia supplied around a quarter of the Eurozone’s primary energy consumption in 2019 which equaled the share of OPEC oil output in global primary energy production in 1973. However, it indicated that diversification to other sources will take time. “Eurozone inflation will average 5% in 2022 on the rise in EU gas prices”, Fitch projected, adding that “some fiscal support to cushion the shock is likely”.

Fitch underscored that US exposure to Russian energy is much lower but the rise in world oil prices is adding to what was already becoming a major inflation problem. The rating agency noted that consumer goods prices continue to rise sharply and services inflation has hit a 30-year high as rents accelerate and wage growth approaches 6%. Households’ concerns about inflation are rising and “We now expect US CPI inflation to peak at 9% and average 7% for the year as a whole”, Fitch stated.

super

“The Fed had already turned hawkish before the invasion of Ukraine. We now expect a total of seven rate hikes in 2022 and the Fed Funds (upper) rate getting back to 3% by end-2023. The ECB has also flagged an earlier end to asset purchases in 3Q22 and we now expect them to raise the main refinancing operations rate by 25bp in 1Q23”.

Fitch

The People’s Bank of China is, by contrast, in easing mode with inflation still low but Fitch noted that it expects further interest rate and reserve requirement ratio (RRR) cuts in addition to significant fiscal easing. Nevertheless, with a weak risk to the near-term consumption outlook from Covid-19 restrictions and the property market, “we forecast only 4.8% growth, below the official target” for China.

Inflation challenges and supply shocks could take a much heavier toll on world GDP growth if they prompt much more abrupt Fed tightening, push oil prices to USD150 a barrel for a sustained period and are also associated with widespread energy rationing in Europe, Fitch warned.

READ ALSO: FIFA Unveils Crypto.com as Official Sponsor of the 2022 World Cup

Tags: COVID-19FitchGDPinflationRussiaUkraine

Related Posts

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022
Around the Globe

EBRD Provides Record Volume of Investments to Romania Since 2009 in 2022

January 27, 2023
Hipkins Sworn In As New Zealand’s Prime Minister
Around the Globe

Hipkins Sworn In As New Zealand’s Prime Minister

January 25, 2023
S&P Projects 'Negative Outlook’ For Traditional Asset Managers
Around the Globe

S&P Global Projects ‘Negative Outlook’ For Traditional Asset Managers

January 25, 2023
Ardern Makes Final Public Appearance As Prime Minister
Around the Globe

Ardern Makes Final Public Appearance As Prime Minister

January 25, 2023
New Zealand: Chris Hipkins Endorsed As Next Prime Minister
Around the Globe

New Zealand: Chris Hipkins Endorsed As Next Prime Minister

January 25, 2023
New Zealand: Education Minister To Become Next Prime Minister
Around the Globe

New Zealand: Education Minister To Become Next Prime Minister

January 25, 2023

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Previous Post

Expansion of Large-Scale Agric Threatens Access To Water In Africa- Oakland Institute

Next Post

“You won’t live past the next Seven Days”- Kanayo O. Kanayo Curses Over Death Rumour

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.
Akon Condemned For Saying Men Are Superior To Women
Entertainment

Akon Condemned For Saying Men Are Superior To Women

by Esther Korantemaa OffeiJanuary 31, 2023
Angola Exempts Chevron from Offshore Drilling Environmental Policies, Allowing it to Dump Oil Waste into the Ocean
Extractives/Energy

Energy Ministry Cancels Oil Block Negotiations with Eni and Three Others

by Stephen M.CJanuary 31, 2023
ECG Urges Customers To Spend Less On Electricity As Upward Adjustment Takes Effect February 1
General News

ECG Urges Customers To Spend Less On Electricity As Upward Adjustment Takes Effect February 1

by Angeller AshongJanuary 31, 2023
AfDB’s AFAWA Hits $1 Billion Investment Milestone In Lending To Women Entrepreneurs in Africa
Finance

AfDB’s AFAWA Hits $1 Billion Investment Milestone In Lending To Women Entrepreneurs in Africa

by Gifty BansahJanuary 31, 2023
Intensify Supervision Of Food Vendors – Prof Matilda Aseidu Tells FDA
General News

Intensify Supervision Of Food Vendors – Prof Matilda Aseidu Tells FDA

by Emmanuel SarpongJanuary 31, 2023
Pakistan Mosque Blast: Death Toll Rises To 100; Officials Blame Security Lapses
Asia

Pakistan Mosque Blast: Death Toll Rises To 100; Officials Blame Security Lapses

by Comfort AmpomaaJanuary 31, 2023
Akon Condemned For Saying Men Are Superior To Women
Angola Exempts Chevron from Offshore Drilling Environmental Policies, Allowing it to Dump Oil Waste into the Ocean
ECG Urges Customers To Spend Less On Electricity As Upward Adjustment Takes Effect February 1
AfDB’s AFAWA Hits $1 Billion Investment Milestone In Lending To Women Entrepreneurs in Africa
Intensify Supervision Of Food Vendors – Prof Matilda Aseidu Tells FDA
Pakistan Mosque Blast: Death Toll Rises To 100; Officials Blame Security Lapses
Snow
FIND OUT MORE

The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In