Sri Lanka, Aug. 20 -- Fitch Ratings has updated its five-year projections for supply-side potential GDP growth for the 10 developed economies ('DM10') covered in its Global Economic Outlook. The GDP-weighted average DM10 potential growth projection has been raised to 1.6% a year from 1.4% in the previous report in August 2023.
This reflects more optimistic projections for the US, revised up to 2.1% from 1.7% in the previous report, Spain, raised to 2.0% from 1.4%, and the UK (1.4% from 1.2%). These changes are partially offset by a sharp downward revision to Germany's potential growth rate to 0.7% from 1.1%.
Other revisions have been fairly small. Projections for Australia and Switzerland have been revised up by 0.1pp to 2.2% and 1.5%, re...