Fitch's 'Inside Credit': Growth in 3 Largest Major Advanced Economies to Increase in 2015

NEW YORK--()--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.

Other topics covered in this week's edition of Inside Credit include:

-Diversification key to weathering price drop for oil producing countries

-U.S. auto loan quality weakens, particularly for subprime

-European mortgage payment rates rising

-Russian utilities adapting to harsher economic climate

-U.S. utilities ended 2014 on a strong note

-UK maintains consolidation; election makes pace uncertain

-Lower oil prices mostly a plus for structured finance and covered bonds

'Inside Credit' is a weekly snapshot of Fitch Ratings' noteworthy content, selected from all sectors and regions. To receive the weekly edition, distributed every Friday at 8am ET, please sign up here:

http://pages.fitchemail.fitchratings.com/InsideCreditSignUp/

Additional information is available at 'www.fitchratings.com'.

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Contacts

Fitch Ratings
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com

Contacts

Fitch Ratings
Media Relations:
Alyssa Castelli, New York, +1 212-908-0540
Email: alyssa.castelli@fitchratings.com