New Delhi [India]April 17 (ANI): Fitch rating has reduced India’s development forecast by 10 basis points for 2025-26. Development forecast for 2026-27 decreases by 20 basis points to 6.3 percent.
The Reserve Bank of India has recently reduced the development forecast for the current financial year 2025-26 to 6.7 percent to 6.7 percent, which is amidst the uncertainties arising out of trade wars after the mutual tariff declared by the US.
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The global rating agency has revised the growth rate evenly for many economies including France, UK, Eurozone, Australia, Canada, Germany, China, America among some others.
Fitch rating forecasts for world development have been rapidly reduced in response to a recent serious growth in the global trade war.
“US ‘Liberation Day” tariff hike was much worse than expected, “Fitch said.
He said, “Large -scale policy uncertainty is damaging the possibilities of business investment, equity price fall is reducing domestic funds and American exporters will be killed with vengeance,” he said.
Fitch Quarterly Global Economic Outlook (GEO) cut world growth in 2025 by 40 basis points and China and America’s growth by 50 basis points.
The annual growth of the US is expected to be at 1.2 percent for 2025, but in October-December 2025 only 0.4 per cent percent will slow down to crawl through the year.
China’s growth is expected to be less than 4 percent in both this year and the next year, while the increase in eurosone will be reduced by 1 percent.
World development is estimated to be less than 2 percent this year; Except for epidemic, this will be the weakest global growth rate since 2009.
In the US, Fitch hopes that the Federal Reserve will wait until the October-December 2025 quarter before the rate of deteriorating US growth outlook.
“Import prices are determined to rise rapidly and have been a dangerous leap in the expectations of moderate period inflation of American houses in the last two months. However, due to the amazing weakening of the US dollar, more space has been created for other central banks and now we hope to cut a deep rate in ECB and emerging markets,” Fitch said. (AI)
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