International rating agency Fitch has lowered its global economic growth forecast for 2021 to 5.7% from 6% expected in September, and for 2022 – to 4.2% from 4.4%. It said in its December Global Economic Outlook (GEO) report.

“The magnitude and duration of the global inflation shock caught most experts and central bankers by surprise, and this factor is contributing to an earlier start to global monetary policy normalization,” the GEO noted.

“The pace of demand growth in the global economy over the past year has significantly outpaced supply growth. Due to persistent supply chain problems, real global GDP in the third quarter increased less than expected, and prices increased more than expected,” the agency notes.

At the same time, Fitch points out that even the reduced growth rate of global GDP at 5.7% will be the highest since 1973, so the experts of the agency believe that the world is far from stagflation.

Fitch lowered the forecast of US GDP growth for 2021 to 5.7% from 6.2%, for 2022 – to 3.7% from 3.9%.

The eurozone GDP growth forecast for 2021 has been lowered to 5% from 5.2%, and for 2022 has been left at 4.5%.

The growth forecast for the Chinese economy for this year is reduced to 8% from 8.1%, for 2022 – to 4.8% from 5.2%. Experts note that the reduction in the forecast of global GDP growth for 2022 is largely due to the expected slowdown in China. Economic growth of other emerging economies this year will be 5.7%, next year – 4.6%, expect in Fitch.