Earlier this week, on June 26, S&P Global Ratings retained India’s GDP growth forecast at 6%, saying India is going to become the fastest-growing economy among Asia-Pacific nations.
“We see the fastest growth at about 6% in India, Vietnam, and the Philippines,” the company said in its quarterly economic meeting regarding the Asia-Pacific region.
Louis Kuijs, chief economist at S&P Global Ratings, said, “The medium-term growth outlook remains relatively solid. The Asian emerging market economies remain among the fastest-growing ones in our global growth outlook through 2026.”
S&P said retail inflation is likely to be pliable, estimating 5% this fiscal year from 6.7%, and the RBI is anticipating cutting interest rates, earlier next year.
“In India, under the assumption of normal monsoons, we expect headline consumer inflation to soften to 5% in fiscal 2024 from 6.7%. Softer crude prices and a tempering of demand will bring down fuel and core inflation, respectively,” Kuijs said.
“The inflation and rate hike cycles have peaked, in our opinion. But we expect the Reserve Bank of India to cut rates only in early 2024, as it wants to see consumer inflation moving to 4%—the centre of its target range,” he added.
S&P has reduced China’s growth prediction for 2023 to 5.2% from 5.5%.
“For the rest of the region, we have left it broadly unchanged, in part because of domestic resilience,” the company said.
- Published By Team Genuine Reporter