Recession unlikely in Asia-Pacific region in 2023: Moody’s

Mumbai: The Asia-Pacific region is unlikely to enter a recession next year, but high interest rates and sluggish global trade growth will remain challenges for countries in the Asia-Pacific region, a Moody’s Analytics report said. The report also states that economic growth in India will slow down in the coming year. However, investment flows will […]
 


Recession unlikely in Asia-Pacific region in 2023: Moody’s

Mumbai: The Asia-Pacific region is unlikely to enter a recession next year, but high interest rates and sluggish global trade growth will remain challenges for countries in the Asia-Pacific region, a Moody’s Analytics report said.

The report also states that economic growth in India will slow down in the coming year. However, investment flows will support productivity gains in technology and agricultural sector development.

The report states that if inflation remains high in India, the Reserve Bank will be forced to raise the repo rate above 6 percent, which may have an impact on the economic growth rate.

In August, Moody’s reported that India’s economic growth rate was estimated to be 8 percent in 2022 and 5 percent in 2023. The economic growth rate of 2021 was seen at 8.50 percent.

The slowdown in global trade is slowing down economies in the Asia-Pacific region. China is not the only weak link in the global economy. Exports from India declined significantly in value terms in October. However, compared to China, India is less dependent on exports for growth.

The economic growth of other countries in Asia Pacific including India will be decent, but the year 2023 will be slower than the year 2022 due to possible recession in Europe and North America, the report also said.

Earlier, the International Monetary Fund had also projected the global economic growth rate to be 3.20 percent for the current year and 2.70 percent for 2023.