Fitch Recession Warning for US and Eurozone – WORLD

The international credit rating agency Fitch Ratings has announced that a recession is predicted for the US and Eurozone economies in the coming period.The statement said that the recession in the euro area is expected to start earlier this year than in the US and will be more severe due to the natural gas crisis increasing energy price volatility. the number of governments is expected to increase in 2023 due to global inflation. China, whose outlook is limited due to uncertainty over the novel coronavirus (Covid-19) epidemic and ongoing tensions in the real estate sector, is not expected to boost global growth significantly next year. it was said that 2022 was the second year in which emerging market countries were downgraded the most, according to the ratings firm.

“High geopolitical risks”

“Geopolitical risks remain high,” Fitch Ratings said in a statement. So far, there is no clear path to reconciliation for Russia and Ukraine, or for Sino-US relations. “The risks associated with this issue have increased with the appreciation of the dollar. In 2023, the focus will be on small emerging market countries that have higher financing needs compared to foreign reserves.”