Rio Tinto PLC, the world’s No. 2 mining company by market value, said it is preparing for U.S. growth to slow and the eurozone to have a softer-than-anticipated start to the year.
Concerns over the Covid-19 Omicron variant and persistent supply chain problems have been weighing on economic activity in the U.S., noted the miner, a major supplier of steel ingredient iron ore and industrial metals copper and aluminum.
“Peak recovery has likely passed implying GDP growth will slow, but solid fundamentals remain in place,” Rio Tinto said.
Highlighting weakened economic activity in the eurozone late in 2021 it said, “the current level of restrictions suggest a slower than expected start to 2022, especially for the service-based economies.”
Meanwhile, China is expected to continue to fine-tune its policies to balance its different priorities, Rio Tinto said, adding that mild pro-growth measures should help support property, infrastructure and consumption there.