- | 4:00 pm
Moody’s upgrades India’s 2024 GDP forecast to 7.1%
Indian gross domestic product (GDP) growth will slow to 7.1% in 2024 and 6.5% in 2025 says Moody's Analytics
Moody’s has upgraded India’s gross domestic product (GDP) growth forecast for calendar year 2024 to 7.1%, up from 6.8% in its June 2024 forecast.
The credit rating agency kept its forecast for India’s growth in calendar year 2025 unchanged at 6.5%.
Moody’s Analytics estimated that the Asia-Pacific region will register higher growth than the rest of the world.
“In developing Asia, growth will slow to 5.1% in 2024 and 4.9% in 2025. Sluggish momentum in China is one factor. Weak domestic demand will weaken domestic growth in China to 4.7% in 2024, well behind the official 5% target. In 2025, growth will slow to 4.6%, ” it said
It further indicated that normalizing growth in India will also affect the overall Asia-Pacific region’s performance. It said, “After a solid post-pandemic rebound of 7.8% in 2023, Indian gross domestic product (GDP) growth will slow to 7.1% in 2024 and 6.5% in 2025. ”
In its Global Macro Outlook 2024-2025 in August, Moody’s Ratings projected India’s real GDP growth at 7.2%, up from the 6.8% announced previously. India’s GDP growth in 2025 was projected at 6.6%, against 6.4% as projected earlier.
S&P Global Ratings on Monday retained India’s growth forecast at 6.8% for the financial year 2024-2025 and 6.9% for 2025-2026. The rating agency predicted that the central bank in India will slash key interest rates by October.
“In India, GDP growth moderated in the June quarter as high interest rates temper urban demand, in line with projection of 6.8% GDP for the full fiscal year 2024-2025.” The rating agency estimated that growth would taper off in FY2025 from a high base in fiscal 2023-2024 but added that India remains the fastest economy in the world.
More Top Stories:
