Fitch Ratings projected global GDP to contract 4.4 per cent in the current year but revised upwards China’s growth estimate to 2.7 per cent for 2020. In its September update to the Global Economic Outlook (GEO), Fitch Ratings cut its 2020 GDP forecast for emerging markets, excluding China, to (-)5.7 per cent, from (-)4.7 per cent estimated in June, mainly on account of a huge downward revision to India GDP forecast for the financial year ending March 2021. Fitch now expects the global GDP to fall by 4.4 per cent in 2020, less than 4.6 per cent contraction it projected in June. It said the COVID-19 pandemic has become more prevalent in emerging market countries, excluding China, as the year has progressed. Brazil, Russia and India now have some of the highest coronavirus caseloads in the world and Latin America currently accounts for more than 40 per cent of coronavirus fatalities. “Emerging market countries in many ways face tougher economic challenges than developed ones, given more limited social safety nets and healthcare capacity. Also, they have less scope for aggressive macro policy easing,” Fitch added.

(Economic Times)