TechFlow news, March 18 — According to Jinshi News, Fitch Ratings stated in its latest Global Economic Outlook that global economic growth is expected to slow to 2.3% this year, well below trend levels and down from 2.9% in 2024. Fitch also cut its U.S. economic growth forecast for 2025 from 2.1% in December last year to 1.7%, and lowered its 2026 growth projection from 1.7% to 1.5%.
Fitch noted that higher tariffs will lead to rising consumer prices in the U.S., reduce real wages, increase business costs, and a surge in policy uncertainty will weigh on corporate investment. The agency estimates that the tariff shock will push near-term U.S. inflation up by 1%. It believes the Federal Reserve will delay further monetary easing until the fourth quarter of 2025. Fitch now expects only one rate cut by the Fed this year, with three additional cuts anticipated in 2026 as the economy slows and tariff levels stabilize.
