Fitch Drops Growth Forecast for 10 Developing Countries

(MENAFN) Fitch, a global credit rating agency, has announced a reduction in its expected medium-term growth rate for a group of 10 developing nations, adjusting its forecast from 4 percent to 3.9 percent.

The agency updated its five-year potential GDP growth projections for emerging markets on Wednesday.

The primary factor driving this adjustment was a downward revision of China's growth forecast, which was reduced from 4.6 percent to 4.3 percent.

Additionally, growth projections for countries such as Mexico, Indonesia, and South Korea were also downgraded.

In contrast, forecasts for Russia, Brazil, Poland, and India were adjusted upwards. South Africa and Türkiye’s projections remained unchanged.

Fitch now anticipates an average potential growth rate of 3.1 percent for the group of 10 developing countries.

As part of these revisions, Indonesia’s five-year potential growth rate was lowered from 4.9 percent to 4.7 percent, Mexico’s from 2 percent to 1.8 percent, and South Korea’s from 2.1 percent to 1.9 percent.

On the other hand, India’s growth forecast was raised from 6.2 percent to 6.4 percent, Poland’s from 3 percent to 3.2 percent, Brazil’s from 1.7 percent to 2 percent, and Russia’s from 0.8 percent to 1.2 percent.

The medium-term potential growth forecast for South Africa remained steady at 1 percent, while Türkiye’s was unchanged at 4.1 percent.

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