Despite disappointing growth figures in the U.S. in the first quarter, Fitch Ratings believes that the better-than-expected data from China along with sustained growth in both the eurozone and Japan will be sufficient to keep the global recovery on track.
Fitch expects world growth to rise to 2.9% in 2017 from 2.5% in 2016 and has slightly revised up its 2018 forecast to 3.1% from 3.0% in March, according to its Global Economic Update released on Tuesday.
"The pick-up in global growth remains on track, with disappointing first-quarter US GDP data offset by better-than-expected numbers in China, and sustained growth in the eurozone and Japan," the agency said.
These analysts added that they expect the first quarter weakness in the U.S. to be temporary.
"Falling unemployment, wealth gains, improved consumer confidence, and the prospect of income tax cuts should support a recovery in consumption from the second quarter," they explained.
"In China, the impact of earlier policy stimulus on activity has proved more powerful than anticipated, and the slowdown in the housing market has taken longer to materialize than expected," Fitch chief economist Brian Coulton said.