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Fitch expects increase in global economic growth in 2017

Fitch expects increase in global economic growth in 2017

International ratings agency Fitch expects global economic growth to accelerate in 2017, to 2.9% from 2.5% last year, reports a press release issued by the agency.

“We forecast a rise to 2.9 percent from 2.5 percent last year due to a recovery in US investment, a broad easing of developed market fiscal policy and recessions ending in Brazil and Russia”, the agency writes.

Meanwhile, the agency predicts a slowing of growth this year in the euro zone, to 1.4% from 1.6% in 2016, and in China, to 6.4% from 6.7% last year.

Fitch notes that the 2017 forecast for the majority of sovereign ratings is negative. “The greatest challenges are undoubtedly faced by emerging market issuers in all sectors, but this is a global trend – the outlook bias is also negative for developed market entities across the majority of sectors”, writes Monica Insoll, Managing Director in Fitch’s Credit Market Research team.

The agency attributes this trend to a range of factors, including a strengthening US dollar, weak global trade, and policy uncertainty. “Many commodity export-dependent countries in the Middle East and Africa also still struggle to adjust to the dramatic decline in prices, despite the recent recovery”, the agency notes.

Source: ria.ru/economy (Russian)

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