India will have the fastest-growing economy in the Asia Pacific area in fiscal year 2023-2024, according to S&P Global Ratings, which keeps its GDP growth forecast at 6%.
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Introduction
Leading credit rating agency S&P Global Ratings has maintained its six percent GDP growth forecast for India for the fiscal year 2023-2024. According to this prediction, India’s economy would expand the quickest in the Asia-Pacific region. The country’s domestic resilience informed the rating agency’s decision to retain the growth projection.
India, Vietnam, and the Philippines Lead the Growth Chart
The greatest growth rates are predicted for India, Vietnam, and the Philippines, each at over 6%, according to S&P Global Ratings’ quarterly economic analysis for the Asia-Pacific area. For these nations, the medium-term economic forecast is still favourable. Asian developing market economies will likely continue to see among the world’s strongest growth rates through 2026, according to S&P.
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Inflation Expected to Soften; Interest Rate Cut Delayed
Retail inflation in India, which was 6.7 percent in the previous fiscal year, is expected to decline to five percent in 2023–2024, according to S&P Global Ratings. Due to weaker oil prices and, accordingly, a moderated demand, the agency anticipates a reduction in fuel and core inflation. S&P predicts that the Reserve Bank of India (RBI) won’t decrease interest rates until the beginning of 2024. The RBI wants to see consumer inflation edging closer to its 4% target range.
China’s Growth Forecast Lowered; Resilience Seen in Rest of the Region
S&P Global Ratings has decreased its projection of China’s growth for 2023 from 5.5 percent to 5.2 percent. The agency has, however, mostly maintained its growth estimates for the remainder of the area, citing internal resilience as a contributing factor.
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