The ten most developed markets globally have had their previous GDP expectations revised upwards, due to more positive numbers than initially expected, according to a new report from Fitch Ratings.
The report highlighted that global shifts in labour productivity and immigration are reshaping growth prospects for developed economies.
This is relevant to insurers, as the long-term outlook could give ideas of which markets show economic strength or weaknesses that could benefit certain investment areas. Fitch has updated its five-year projections for supply-side potential GDP growth for the ten developed economies covered in its Global Economic Outlook. The GDP-weighted average of the ten developed market countries' potential growth projection has been raised to 1.6% a year from 1.4% in the previous report in August 2023.
The report said 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%,” it said.
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