Fitch revises US’s economic outlook to Negative
(VOVWORLD) - Fitch Ratings, one of the world’s major credit-rating companies, has revised its outlook on US’s credit score to negative from stable, citing a deterioration in the country’s public finances and the absence of a credible fiscal consolidation plan in the context of the ongoing coronavirus pademic.
But the US’s ranking remains AAA.
Fitch expects the economy to contract by 5.6% in 2020 and recover by 4% in 2021, with the massive fiscal policy response averting a deeper downturn.
Earlier, according to the US Department of Commerce, in the second quarter the world's leading economy dropped by nearly 33%, the sharpest decline since 1947. The US economy dropped by 5% in the first quarter and officially fell into recession due to COVID-19 epidemic.