NEW YORK--(BUSINESS WIRE)--Global economic growth is highlighted in this week's edition of Fitch Ratings' Inside Credit. According to Fitch's Global Economic Outlook, global growth is uneven but expected to strengthen in 2015 and 2016. Fitch forecasts global GDP to climb 2.4% in 2014 while accelerating to 2.9% in 2015 and 3% in 2016.
'The outlook for global growth has weakened slightly since Fitch's last update in September, driven primarily by weakness in the eurozone, Japan and other large emerging markets,' said Gergely Kiss, Director of Sovereigns. 'A robust recovery in the U.S. is driving current growth, supported by private consumption, higher household disposable income and a strengthening labor market.'
Fitch also expects that a 20% drop in oil prices will boost global growth by 0.3% over the next two years; however, winners and losers will emerge.
Other topics covered in this week's edition of Inside Credit include:
--Fitch places Japan on Rating Watch Negative
--APAC credit investors are most concerned by geopolitical risk
--U.S. high yield default rate will remain benign, but the energy sector is one to watch
--The largest banks globally should meet their regulatory challenges
--Geopolitics and oil key to prospects for CIS banks
--The capital surcharge for the largest U.S. banks is tougher than international standards
--EMEA bank ratings could be pressured by expected support changes.
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