Global Recovery Looks Weaker

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    The global economic recovery is looking weaker due to gloomier prospects for emerging markets, says a Fitch Ratings forecast. Its global growth forecast has weakened since its December estimates, declining by 0.2 percentage points for 2015, due entirely to revisions to its outlook for emerging markets. Its forecast for 2016 is unchanged. It now estimates that world GDP growth will come in at 2.7 per cent in 2015 and three per cent 2016, up from 2.5 per cent in 2014, driven by the continued recovery of the major advanced economies ‒ the U.S., the Eurozone, and Japan. However, emerging markets will continue to slow, due to recessions in Russia and Brazil, and a structural adjustment in China. It forecasts emerging markets GDP growth will slow to 3.6 per cent in 2015, before edging up again to 4.2 per cent in 2016.