International credit ratings agency Fitch Ratings has reported in the March issue of its global macroeconomic outlook report that it has raised its 2024 global GDP growth forecast by 0.3 percentage points to 2.4 percent. This reflects a sharp upward revision to its US forecast to 2.1 percent from 1.2 percent in the December 2023 Global Economic Outlook.
According to the report, stronger US growth prospects outweigh a marginal decline to the China 2024 growth forecast to 4.5 percent from 4.6 percent - and a minor revision to the euro zone forecast, to 0.6 percent from 0.7 percent. Growth in emerging markets excluding China has been revised up by 0.1 percentage points to 3.2 percent. Fitch still expects global economic growth in 2025 to edge up to 2.5 percent as the euro zone finally recovers, but as the US growth slows.
The agency stated that it has raised its 2024 Turkey GDP growth forecast to 2.8 percent from 2.5 percent in the previous report amid short-term economic developments. In addition, Turkey’s GDP growth is expected to be 3.1 percent in 2025. Fitch Ratings also revised Turkey’s credit rating to B+ from B while its outlook for the country is positive. The higher credit rating reflects the durability and effectiveness of policy changes implemented since June 2023. The agency expects the policy tightening consistent with reducing inflation to continue after the elections.
In addition, international credit rating agency Moody’s economic growth forecast for Turkey stands at 2.5 percent for 2024 and three percent for 2025, as SteelOrbis previously reported.