Global economic growth forecast raised

Analysts at the international rating agency Fitch have raised their forecast for global economic growth for 2024 from 2.4 to 2.6 percent.

Thus, the global economic growth forecast for this year was improved by 0.2 percentage points (pp), Interfax reports.

 The increase in the estimate was due to a number of factors, including the restoration of China's export potential, as well as increased momentum for domestic demand growth in emerging economies.

In addition, the revision of the March forecast was influenced by the strengthening of the GDP prospects of the European Union (EU), according to the updated report of the rating agency. Fitch now expects the EU economy to grow by 0.8 per cent by the end of 2024 instead of the previously projected increase of 0.6 per cent.

At the same time, the pace of GDP recovery in the EU is still noticeably inferior to the dynamics in the United States. The agency's analysts expect the US economy to grow by 2.1 per cent this year. Economic growth in the United States is slowing, but at a modest pace, Fitch summarized.

Earlier, the European Commission (EC) raised its forecast for Russian GDP growth for 2024 from 1.6 to 2.9 per cent. At the same time, in 2025, as expected in the EC, the dynamics of the increase in the gross product of the Russian Federation will slow down to 1.7 per cent. As for inflation, European analysts predict it at 6.6 per cent with a further decrease in 2025 to 4.5 per cent.