Fitch Slashes 2019-2020 GDP Forecasts For China, Eurozone, US Over Trade, Brexit Concerns

Fitch Slashes 2019-2020 GDP Forecasts for China, Eurozone, US Over Trade, Brexit Concerns

MOSCOW (UrduPoint News / Sputnik - 10th September, 2019) International rating agency Fitch Ratings said on Tuesday in its fresh global economic outlook (GEO) it had lowered 2019 and 2020 economic growth forecasts for China, the eurozone and the United States amid an escalation of the US-China trade war and Brexit uncertainty.

"China's growth rate is now expected to fall to 6.1% in 2019 and 5.7% in 2020, down from 6.2% and 6.0%, respectively, in the June 2019 GEO. Eurozone growth is now forecast at 1.1% in both 2019 and 2020 compared to 1.2% for 2019 and 1.3% for 2020 in June. US growth forecasts have also been lowered to 2.3% in 2019 and 1.7% in 2020 compared to 2.4% and 1.8% respectively, in June," the agency said.

The prospects for eurozone's economic growth could be even worse in case of a no-deal Brexit, and this risk has increased over the past few months, it added.

"Trade policy disruptions - including the recent sharp escalation in the US-China trade war and significant risks of a 'no-deal' Brexit - are darkening the global economic outlook," Fitch stressed.

The agency also expects that the US Federal Reserve may cut the interest rate by another 25 basis points in December after a similar move in July.

Fitch will release full September forecast for the global economy later this month. It will contain updated forecasts for 20 major global economies.

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