Just two months ago, Fitch Ratings considered President Donald Trump as a threat to economic stability not only in the United States, but also worldwide. Now it seems that everything has changed.
One of the three major international rating agencies on Tuesday published a report on the internal finances of the country. In Fitch's, it seems to have forgotten about his dire warnings in February: experts confirmed the highest credit rating of the US on the level of «AAA» and raised the forecast of GDP growth.
Now, the agency expects the US economy to grow by 2.3% in 2017 and accelerate to 2.6% in 2018. It is only the preliminary forecasts yet, but still more comforting than under President Barack Obama (+ 1.6%).
In addition, Fitch estimates that relatively bright prospects due in part to items in the economic agenda Trump.
"The focus of the new administration on deregulation and tax cuts stimulated the growth of confidence in the business community and the positive impact on economic growth, if all these plans will be implemented, - says Fitch analyst Charles Seville. - However, the tax cut is unlikely to lead to long-term and significant GDP growth. "
In February, the agency stated that the administration Trump "is a risk to the international economic environment and global sovereign credit principles."
Then the experts expressed concern that the introduction of Trump International tariff will be the beginning of a trade war. However, since that time the president softened his protectionist rhetoric, and last week even met with his counterpart from China Xi Jinping.
Yet, in the Fitch report published on Tuesday again pointed out that the US national debt reaches dangerous levels.
"Increased trade protectionism and immigration restriction would be a negative factor for growth in the medium term", - said Seville. The analyst noted that the United States does not expect to reduce the rating in the future.
Fitch Ratings is not alone in its warnings about economic terms Trump. Even during the presidential campaign, Mark Zandi, chief economist at Moody's Analytics, warned that the new president of its plans will lead to a significant decline.
Based on materials WELTRADE
