Global recovery continues despite supply constraints: Fitch

A strong recovery in global gross domestic product (GDP) is continuing despite supply constraints that are pushing up prices and resulting in producer delays in meeting final customer demand, said Fitch Ratings on Wednesday.
According to Fitch, GDP grew robustly in 2Q21 in most of the largest economies, PMI surveys signal ongoing expansion in recent months and labour-market conditions are improving. Supply-side constraints and higher commodity prices have seen producer and consumer price inflation rise sharply across the board in recent months.
The rating agency said that stronger-than-anticipated price increases look to have played a part in weaker- than-expected real GDP growth in the US in 2Q21 and growth has also been lower than expected in parts of Asia.
In contrast, 2Q21 GDP releases in Europe have generally surprised on the upside in comparison with Fitch’s June 2021 GEO forecasts, following the reopening of service-sector activities. The latest macroeconomic data releases come against a backdrop of rapid gains in global equity prices, it said.
Meanwhile, Fitch Ratings has been recognised as the best rating agency for Islamic finance for the fifth year in a row by The Asset, a leading financial magazine in the Asia-Pacific.
The Asset awards are adjudicated by the publication’s Board of Editors and Benchmark Research team, who also obtain feedback and testimonials from issuers, investors and other market participants in Asia and the Middle-East as part of the evaluation process.
Fitch covers more Islamic finance-based issuers than any other international credit ratings agency, as well as over 150 outstanding Islamic finance instruments worldwide. Fitch produces in-depth analysis, ratings and research with a dedicated sukuk rating criteria, as well as ESG considerations for Islamic finance ratings. The agency also incorporates takaful-specific considerations within its global insurance rating criteria.