Fitch forecasts contraction in Europe’s main economies

In the risk rating agency’s statement, it was indicated that weak global economic growth and high inflation were some of the main factors that negatively affected companies outside the financial sector this year.

In the statement, it was reported that the outlook for 48 percent of companies assessed in the North America, Europe, Middle East and Africa (EMEA), Asia Pacific and Latin America regions by the credit rating agency has worsened from this year, compared to just 1 percent last year.

In the statement, which indicated that serious economic difficulties are expected in Europe this year, it was reported that a contraction of real GDP is expected in the main economies of Europe, including Germany, England and Italy, in 2023.

In the Fitch statement, “(in Europe) the post-pandemic recovery is slowing. Weakening demand combined with high inflation is expected to negatively affect credit profiles in various sectors. statements were included.

In the statement, it was indicated that despite the weak growth expectations in the global economy, there is still enough room for possible rating moves of companies worldwide due to rating decisions made last year. (AA)