S&P Global Ratings on Monday retained India's GDP growth forecast at six percent saying it will be the fastest growing economy among Asia Pacific nations.
The GDP growth forecast for the current and the next fiscal has been kept unchanged from the forecast made in March partly on account of domestic resilience.
"We see the fastest growth at about six percent in India, Vietnam, and the Philippines, S&P Global Ratings said in its quarterly economic update for Asia-Pacific.
"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," said Louis Kuijs, Asia-Pacific chief economist at S&P Global Ratings.
S&P said retail inflation is likely to soften to five percent this fiscal from 6.7 percent, and the RBI is expected to cut interest rates only early next year.
"In India, under the assumption of normal monsoons, we expect headline consumer inflation to soften to five percent in fiscal 2024 from 6.7 percent. Softer crude prices and tempering of demand will bring down fuel and core inflation, respectively.
"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 four percent — the centre of its target range,” Kuijs said.
S&P has lowered the growth forecast for China to 5.2 percent from 5.5 percent for 2023.
“For the rest of the region, we have left it broadly unchanged, in part because of domestic resilience,” S&P said.
(Edited by : Asmita Pant)
Check out our in-depth Market Coverage, Business News & get real-time Stock Market Updates on CNBC-TV18. Also, Watch our channels CNBC-TV18, CNBC Awaaz and CNBC Bajar Live on-the-go!
Stampede-like situation disrupts Rahul Gandhi, Akhilesh Yadav's joint rally in Uttar Pradesh
May 19, 2024 4:26 PM
Ladakh Lok Sabha election: With Independent candidate's entry, it's now a 3-way contest for BJP and Congress
May 19, 2024 4:01 PM