Global Growth Potential Tumbles as Jobless Spikes, Fitch Says

Global potential economic growth is set to drop in coming years due to fallout from the Covid-19 pandemic, amid a rise in unemployment and a cooling of investment by companies, according to Fitch Ratings Ltd.

The ten advanced countries -- covered in its Global Economic Outlook -- showed an average decline in annual potential gross domestic product growth of about 0.6 percentage point compared with Fitch’s previous five-year outlook. U.S. productive potential growth is revised down to 1.4% from 1.9%, the U.K. to 0.9% from 1.6% and the euro zone -- the weighted average of Germany, France, Italy and Spain -- to 0.7% from 1.2%, it said.