Forex News - The rating agency Fitch on Monday revised down the projected growth in all developed countries and developing countries, triggered by financial market volatility continues to hit market sentiment, as well as causing a decrease in private spending and business investment.
" Fitch does not predict a double -dip recession in the view of the global economy, but the possibility of a recession continues to increase as the continued volatility in financial markets continued to undermine sentiment towards risk and potentially injure the credit sector, " said Maria Malas - Mroueh, a director at Fitch.
" For the Euro area, current projections indicate if growth will be close to zero until Q1 2012, following the weak sentiment growing throughout Europe and the uncertainties have risen sharply since June as the impact of the ongoing debt crisis, " added Lazy - Mroueh.
Fitch revised its world growth forecast down to around 2.6% in 2011 from 3.1 % previously. While growth is expected in 2012 would be around 2.7%, down from 3.4 % previously.
Global financial markets continue to show decline in recent weeks as investors increased anxiety on the ability of policy makers in producing an appropriate solution to overcome the debt crisis of the Euro zone.
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