NEW
YORK, June 29, 2022 /PRNewswire/ -- We have cut
our 2022 growth forecasts for most large economies, outlined in a
report we published today, "Global Economic Outlook Q3 2022:
Rates Shock Puts The Economy On A Slower Path."
"Things have changed, and not for the
better," said S&P Global Chief Economist Paul Gruenwald.
China has had the biggest
downward revision. The country's economy will likely expand 3.3%
this year, a 0.9 percentage point drop from our growth assumption
in May. We attribute this low growth to the effects of
COVID-lockdowns.
Economic momentum should protect the U.S. economy from recession
in 2022. But the weight of extremely high prices is damaging
purchasing power and, as aggressive Federal Reserve policy
increases borrowing costs, it's hard to see the economy walking out
of 2023 unscathed.
We have lowered our GDP growth forecasts modestly for the
eurozone economy, largely on heightened inflation expectations.
"Things have changed, and not for the better," said S&P
Global Chief Economist Paul
Gruenwald. "The main twist has been the about-face in the
inflation narrative. With the wisdom of hindsight, we now see that
central banks waited too long to raise rates, putting too much
weight on supply-side explanations, or putting too much weight on
labor market outcomes, or both."
This report does not constitute a rating action.
Media
Contact:
|
Orla OBrien, Boston +1
(857) 407-8559;
|
|
orla.obrien@spglobal.com
|
S&P Global Ratings is a division of S&P Global
(NYSE: SPGI), which provides essential intelligence for
individuals, companies and governments to make decisions with
confidence. For more information,
visit www.spglobal.com/ratings.
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SOURCE S&P Global