Fitch Ratings has pared back its forecasts for global GDP growth to 2.1%, citing “persistent weakness” in the global recovery. That is down from Fitch’s June view of 2.2%. For 2013, the forecast was reduced to 2.6% from 2.8%.
Fitch lowered its 2013 GDP growth expectations for the United States to 2.3%, but kept its 2012 forecast at 2.2%. Persistently high unemployment and the uncertainty surrounding fiscal policy are expected to continue to challenge the U.S. economy.
The U.S. also said today that growth in the second quarter was 1.3%, down from a previous estimate of 1.7%, due to less consumer spending and business investment than previously estimated.
Fitch predicts the eurozone economy will contract 0.5% this year. Growth of only 0.3% and 1.4% is predicted for the next two years.
The agency expects emerging markets to post higher GDP numbers, despite also facing growth challenges. For China, Fitch forecasts growth of 7.8% in 2012 and by 8.2% in 2013. In India and Brazil, after a cyclical trough in 2012, economic growth should improve in 2013. Russia is expected to see steady growth at about 3.5% in this year and the next.
Smart Investors Are Quietly Loading Up on These “Dividend Legends” (Sponsored)
If you want your portfolio to pay you cash like clockwork, it’s time to stop blindly following conventional wisdom like relying on Dividend Aristocrats. There’s a better option, and we want to show you. We’re offering a brand-new report on 2 stocks we believe offer the rare combination of a high dividend yield and significant stock appreciation upside. If you’re tired of feeling one step behind in this market, this free report is a must-read for you.
Click here to download your FREE copy of “2 Dividend Legends to Hold Forever” and start improving your portfolio today.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.
Editors' Picks
