From financialnewswire.com.au: Fitch Ratings has downgraded its global growth forecast, predicting world growth will dip below 2% this year, marking the weakest pace since 2009, largely due to escalating trade tensions between the US and China.

The agency anticipates a 0.5 percentage point loss in growth for both economies, forecasting the US will slow to an annual growth rate of 1.2%, and China will fall below 4%.

Tariff escalations, particularly in US-China trade, are expected to significantly impact trade flows, raise inflation risks, and hinder business investment prospects.