Tbilisi (Times Of Ocean)- Fitch lowered its 2022 global economic growth forecast from 4.2% to 3.5% in a report released Monday.
The Fitch Ratings agency says supply problems hinder recovery from the pandemic.
The agency stated that global supply bottlenecks are pushing up inflation in the post-pandemic recovery process.
“The war in Ukraine and economic sanctions on Russia have put global energy supplies at risk. Sanctions seem unlikely to be rescinded any time soon,” it added.
Fitch said rising oil and gas prices will increase industry costs and cut consumers’ real incomes because Russia supplies 10% of the world’s energy needs.
As a result, the agency has lowered its GDP estimate for 2023 by 0.2 percentage points to 2.8%.