Global Corporates Mid-Year Outlook 2023

This report presents Fitch Ratings' Global Corporates Mid-Year Outlook for 2023, detailing the current economic environment and its impact on various corporate sectors. The document outlines the challenges faced by global corporates, including tighter monetary policies, sustained core inflation, and geopolitical tensions. Despite these challenges, the report notes a modest improvement in the economic outlook, particularly due to the end of China's zero-Covid-19 policy and resilient consumer confidence in the US. Fitch has raised its forecast for global GDP growth to 2.4% for 2023. The report also discusses sector outlook revisions, indicating a positive shift for several sectors in the Asia-Pacific region while maintaining a cautious stance on EMEA and Latin American corporates. The outlook for North American investment-grade corporates remains neutral, with specific sectors like US Real Estate facing a deteriorating outlook due to unfavorable credit developments. Overall, the report emphasizes the need for vigilance regarding macroeconomic and geopolitical developments that may affect corporate credit metrics.