Fitch Ratings has downgraded its global growth forecast for 2025, warning that the intensifying trade war between the United States and China is dragging the world economy to its weakest non-pandemic performance since 2009. Fitch has cut its 2025 world growth estimate by 0.4 percentage points from March edition. "World growth is projected to fall below 2% this year, which would be the weakest since 2009 excluding the pandemic." Fitch said in a special update to its quarterly Global Economic Outlook released on Wednesday. "the weakest since 2009 excluding the pandemic." The rating agency cited spiraling US-China tariffs—some reaching over 100 per cent —as a key factor disrupting trade flows, hurting investment, and fueling inflation. Eurozone growth will remain subdued at under 1 per cent. Fitch cut growth forecast for US and China 0.5 percentage points. China's growth is forecast to fall below 4 per cent. Fitch described the climate as "massive policy uncertainty" warning of continued volatility unless trade tensions subside. Attribution: Amwal Al Ghad English
