Sri Lanka, April 17 -- Fitch Ratings has sharply lowered its forecasts for world growth in response to the severe escalation in the global trade war. In a special update to its quarterly Global Economic Outlook, Fitch has cut world growth in 2025 by 0.4pp and China and US growth by 0.5pp from the March edition.
US annual growth in 2025 is expected to remain positive at 1.2% but will slow to a crawl through the year to just 0.4% yoy in 4Q25. China's growth is forecast to fall below 4% this year and next while eurozone growth will remain stuck well below 1%. World growth is projected to fall below 2% this year, which would be the weakest since 2009 excluding the pandemic.
US 'Liberation Day' tariff hikes were far worse than expected. While ...