‘Populist Surge’ a Threat to Global Growth, Credit Ratings Agency Warns
LONDON—A leading credit ratings agency is warning that a surge in populism and anti-establishment sentiment is pushing the world into an era of economic nationalism to the detriment of long-term global growth.
In its outlook for 2017, Fitch Ratings says increased trade protectionism and weaker migration flows would dampen growth in advanced economies though short-term budgetary measures will likely provide a boost for next year.
Fitch has revised up its global growth forecasts for next year by 0.1 percentage point, largely on the back of a fiscal boost expected in the U.S. following Donald Trump’s January inauguration as president.
One downside risk, Fitch says, centres on whether the “populist surge” accentuates tensions in Europe.