ISTANBUL

Fitch Ratings revised up its global economic growth forecast for this year to 2.7%, according to its Global Economic Outlook September report released Tuesday.

The revision is 0.1 percentage point higher than the previous forecast made in June.

"We expect global GDP to slow to 2.5% in 2025 as US growth falls to 1.6% on a fading fiscal impulse and gradual slowdown in consumption, as household income decelerates," said the report.

The US economy's growth forecast for this year was also revised up to 2.5%, from 2.1% in June.

China's economic growth, meanwhile, is estimated to expand 4.5% next year, down from 4.8% growth this year as the country's rapid export growth is expected to ease.

"But eurozone growth should recover to 1.5% in 2025 from 0.8% this year, said the report, adding: "This mainly reflects the impact of a recovery in real wages on consumption, which has been weak since 2022."

The agency said annual inflation in Türkiye has slowed down significantly in August, while it is expected to fall to 43% by the end of this year.

Fitch expects the Turkish economy to expand 3.5% this year, 2.8% next year and 3.7% in 2026.