S&P Global Ratings – a credit standing company and a division of S&P Global -Tuesday mentioned India’s GDP growth charge will rise to 7 per cent by 2026 compared to 4.6 per cent for China.
Asia-Pacific’s growth engine to shift from China to South and Southeast Asia, mentioned S&P in its report titled ‘China Slows India Grows’.
It additional added, “We project China’s GDP growth to slow to 4.6 per cent in 2024 (2023: 5.4 per cent), edge up to 4.8 per cent in 2025, and return to 4.6 per cent in 2026.We see India reaching 7.0 per cent in 2026; Vietnam, 6.8 per cent (4.9 per cent); Philippines, 6.4 per cent (5.4 per cent); and Indonesia remaining steady at 5 per cent.”
India’s GDP will develop at 6.4 per cent within the present fiscal yr and within the subsequent, the US-based score company projected.
For 2025 S&P projected growth charge to rise to 6.9 per cent, adopted by 7 per cent in 2026.
S&P mentioned with Asia-Pacific’s central banks probably to maintain rates of interest excessive, the area’s debtors will see costlier debt servicing.
“Concurrently, a widening conflict in the Middle East could drag global supply chains and raise energy costs, fanning inflation. High input costs dilute corporate margins, while high prices weaken demand,” S&P mentioned.
Energy and demand shock danger, it mentioned, including Asia-Pacific’s growth is inclined to power shocks (widening Middle East battle) and slower international demand (danger of U.S.arduous touchdown).
“We lowered our projection for the region’s growth (China) in 2024 from 4.4 per cent to 4.2 per cent. The prospects for industries also differ, with export-centric manufacturing faring worse,” S&P mentioned.
(With PTI inputs)
