Fitch lowers world GDP growth to 6% for 2021

By Ovunc Kutlu

ANKARA (AA) - Fitch Ratings expects world gross domestic product (GDP) will grow by 6% in 2021, according to its Global Economic Outlook report for September.

The new figure is down from the global rating agency's 6.3% world GDP growth forecast made in June.

"Supply constraints are limiting the pace of recovery," the agency said in a statement, adding: "A greater share of demand growth is being reflected in price increases and US inflation forecasts have been revised up again."

The agency lowered the US' GDP forecast for this year to 6.2%, from 6.8% made in June.

China’s 2021 growth expectation was also lowered to 8.1%, from 8.4%, citing property slowdown weighing on domestic demand.

Growth estimate for eurozone this year, on the other hand, was revised up to 5.2%, from 5%.

"Progress with vaccine rollout is limiting the impact of renewed increases in coronavirus cases on economic activity in Europe and, to a slightly lesser extent, in the US," Fitch said.

"But virus dynamics are influencing growth more heavily where vaccination rates remain low. The pandemic is still constraining labor supply," it added.