Fitch expects global growth to slow

International credit rating agency Fitch Ratings reported that global macroeconomic growth is expected to slow next year as monetary policy in the US has a greater impact on the real economy, the real estate crisis in China puts pressure on consumption and investment, and economic growth in Europe improves only marginally. In a statement, Fitch said that macro weaknesses continue to put credit pressure on the global outlook. The statement emphasized that global macroeconomic growth is expected to slow in 2024 as monetary transition in the US has a greater impact on the real economy, the real estate crisis in China puts pressure on consumption and investment, and economic growth in Europe improves only marginally. It was stated in the statement that the general macroeconomic slowdown combined with high interest rates indicates that the difficult environment for global credit will continue, and that their main expectation is for monetary policies in the US and the Eurozone to change in the second half of 2024. Policy rates likely at peak but decline likely to be slow Another statement from Fitch said that policy rates in the US, Eurozone and UK have been held steady since the third quarter of 2023 and have likely reached peaks in the tightening cycle. The statement said that the next moves by the US Federal Reserve (Fed), European Central Bank (ECB) and Bank of England (BoE) are expected to be interest rate cuts, but the easing will be slower and more superficial than markets currently expect. The credit rating agency’s statement noted that policy rates are expected to fall by 75 basis points in all three economies by the end of 2024.