In an upward revision, Fitch Ratings has increased India’s medium-term potential growth forecast from 5.5 per cent to a robust 6.2 per cent. This positive development reflects the country’s growing economic resilience and potential for expansion.
This upgrade places India in the spotlight for its strong growth trajectory. Additionally, Mexico received a substantial boost in its growth estimate, with Fitch revising it from 1.4 per cent to 2.0 per cent.
These positive changes were underpinned by a more favourable outlook for the capital-to-labour ratio. The adjustments didn’t stop there. Fitch also revised growth forecasts for other countries. Poland’s potential growth estimate was increased to 3.0 per cent from 2.6 per cent, Turkey’s to 4.1 per cent from 3.9 per cent, Brazil’s to 1.7 per cent from 1.5 per cent, and Indonesia’s to 4.9 per cent from 4.7 per cent.