Asia-Pacific’s growth engine to shift from China to India: S&P Global Ratings’ report
PTC News Desk: India is expected to lead South and Southeast Asia as the region's growth engine, with GDP expected to reach 7% by 2026. This is in line with a credit analysis report published by S&P Global Ratings titled "China Slows, India Grows."
In comparison to India's GDP growth rate of 7% by 2026, China's economy will expand by 4.6%, according to a report on Asia-Pacific credit conditions in the first quarter of 2024. It blamed China's slowing growth on deepening property sector problems and high debt levels.
According to the report, which is based on S&P Global Ratings' Asia-Pacific Credit Conditions Committee meeting on November 21, there is a shift in regional growth a pattern “We project China’s GDP growth to slow to 4.6% in 2024 (2023: 5.4%), edge up to 4.8% in 2025, and return to 4.6% in 2026.”
According to the report, India has the highest growth rate in the region. "We see India reaching 7.0% in 2026 (6.4%); Vietnam, 6.8% (4.9%); Philippines, 6.4% (5.4%); and Indonesia remaining steady at 5%," the report said.
India has one of the world's fastest growing major economies. The International Monetary Fund (IMF) forecasted 6.3% GDP growth in India in 2023-24 in its World Economic Outlook last month, a 20-basis-point increase from July figures. One basis point equals one hundredth of one percent. Despite challenging external conditions, the World Bank maintained India's economic growth forecast for 2023-24 at 6.3% in its biannual review.
- With inputs from agencies
