In the latest edition of Inside Credit, Fitch Ratings predicts that world GDP growth will strengthen to 2.7% in 2015 and 3.0% 2016, up from 2.5% in 2014, driven by recovery in major advanced economies.
This year will be the first time since 2010 that the three largest major advanced economies, the U.S., the eurozone and Japan, will all see an uptick in growth. However, growth in emerging markets remains challenged due to recessions in Russia and Brazil, as well as the structural adjustment in China.
'The U.S. will likely see the strongest growth among major advanced economies, with GDP growth forecast at 3.1% for 2015. Private consumption will remain a key growth driver, supported by lower oil prices, higher household disposable income and a strengthening labor market. However, exports may be constrained by the strong dollar," says Gergely Kiss, Director of Sovereigns.
