Moody's revises up U.S. and emerging markets forecasts, cuts Europe

Credit ratings firm Moody's revised upwards on Wednesday its economic forecasts for the year for the United States and emerging markets, but cut Europe's following the region's tough COVID-19 lockdowns.

Credit ratings firm Moody's revised upwards on Wednesday its economic forecasts for the year for the United States and emerging markets, but cut Europe's following the region's tough COVID-19 lockdowns. Moody's pushed up its U.S. growth forecast to 4.7%, from the 4.2% it had expected in November.

Emerging market growth moved up to 7% from 6.1%, led by upward revisions to China, India and Mexico, while the euro zone and Britain saw their respective projections cut to 3.7% and 4.7%, from 4.7% and 5.2% previously. "The effects on individual businesses, sectors and regions continue to be uneven, and the COVID-19 crisis will endure as a challenge to the world's economies well beyond our two-year forecast horizon," Moody's said in a report on its new forecasts.