Moody's revises up US and emerging markets forecasts, cuts Europe amid 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 US growth forecast to 4.7%, from the 4.2% it had expected in November.

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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.