November 30, 2022

Moody’s says India’s economic growth will slow this year but there is no chance of a recession. India’s economic growth to slow next year, but recession unlikely: Moody’s

Moody’s says India’s growth may slow next year. The rating agency says a recession is not expected in the Asia Pacific region in the coming year.

Moody’s says India’s growth may slow next year.

Moody’s says India’s growth may slow next year. The rating agency says a recession is not expected in the Asia Pacific region in the coming year. According to Moody’s, the sector will face headaches due to higher interest rates and slower global trade growth. Moody’s said this in its analysis titled ‘APAC Outlook: A Coming Downshift’ on Thursday.

Why might the growth decline?

The report says, on the other hand, along with technology, there will be gains in investment and production in the agricultural sector. But, if high inflation persists, the Reserve Bank of India will raise its repo rate by more than 6 percent, which could lead to a fall in GDP growth. In August, Moody’s projected India’s growth rate to slow to 8 percent in 2022. The rating agency had projected growth to fall further to 5 percent in 2023. The growth rate in 2021 was 8.5 percent.

Moody’s said economies in the Asia Pacific (APAC) region are slowing and this trade-dependent region is facing the effects of slower global growth. Global industrial production remains at a healthy level. It reached its peak in February. This was the case before the war between Russia and Ukraine.

Global growth will suffer due to Europe, America

Moody’s Analytics chief APAC economist Steve Cochran said China is not the only weak link in the global economy. He said that in Asia, India too saw a decline in exports on annual basis in October. He says that at least India is less dependent on exports than China for growth.

Also read this



Looking at the regional outlook, Moody’s said that besides India, other major economies in the Asia Pacific region are also expanding after the lifting of pandemic restrictions. However, 2022 will not be a good year for economic growth due to China’s troubled economy with recession expected in Europe and North America.

Leave a Reply

Your email address will not be published. Required fields are marked *