The ratings agency added that the rating outlook trend has turned positive in developing markets and expects the median emerging market current account deficit to improve slightly to 2.9 per cent of GDP in 2017.
The European political environment is also more settled than what it was at the start of the year. However, the beginning of the Brexit negotiations represents a material risk to the UK, Fitch said.
Fitch also said that it expects primary fiscal balances of most countries to deteriorate, mainly due to the lower political support for additional fiscal tightening in developed markets.
Fitch said earlier this week that cyclical pressures on banks in Asia-Pacific financial systems are beginning to ease due to global trade revival and a strong start to the year in China, while high debt remained a risk with the rise in US interest rates expected to continue over the next few years.