Fitch Lowers U.S. Economic Growth Forecast to 0.5% for Next Year

Traders on the floor of the New York Stock Exchange (NYSE) / Photo by Yonhap News

[Asia Economy Reporter Noh Kyung-jo] The international credit rating agency Fitch has significantly lowered its forecast for the U.S. economic growth rate next year.

According to CNN on the 18th (local time), Fitch is expected to release a report on the same day lowering its forecast for the U.S. 2023 Gross Domestic Product (GDP) growth rate from 1.5%, presented in June this year, to 0.5%.

CNN reported that the report also lowered the economic growth forecast for the U.S. this year, but did not disclose specific figures.

Fitch predicted that due to inflation and the Federal Reserve's steep interest rate hikes, the U.S. economy will enter a mild recession starting next spring. CNN also reported that Fitch forecasted household income will decrease due to rising prices, leading to a decline in consumer spending in the second quarter of next year.

However, CNN added that Fitch expects the recession in the U.S. to be mild compared to the last two recessions.

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