Moody’s Analytics Estimates India’s Growth To Slow Down In 2025, Says APAC To Feel The Impact

India clocked a robust recovery post-pandemic of 7.8 per cent in 2023, and this growth will now tamper down to 7.1 per cent in 2024 and 6.5 per cent in 2025, the analytics wing said

Moody’s Analytics further stated that the growth will normalise in India and this will drag down the performance of the region as well

Source : ABPLIVE AI

Moody’s Analytics said a slowdown in the Indian economy would have an impact on the Asia Pacific (APAC) region’s performance in 2025. The analytical firm estimated that India’s economy will slow down to 6.5 per cent in 2025, against an estimated growth of 7.1 per cent in 2024. 

The agency noted, “In developing Asia, growth will slow to 5.1 per cent in 2024 and 4.9 per cent in 2025. Sluggish momentum in China is one major factor. Weak domestic demand will weaken domestic growth in China to 4.7 per cent in 2024, well behind the official 5 per cent target. In 2025, growth will slow to 4.6 per cent.”

Moody’s Analytics further stated that the growth will normalise in India and this will drag down the performance of the region as well, reported Business Standard. India clocked a robust recovery post-pandemic of 7.8 per cent in 2023, and this growth will now tamper down to 7.1 per cent in 2024 and 6.5 per cent in 2025, the analytics wing said.

It further revised the GDP growth forecast for India to 7.1 per cent for 2024 from an earlier estimate of 6.8 per cent given in June. 

Notably, another global ratings agency, S&P Global maintained its growth forecast for India on Tuesday and estimated the economy to expand at 6.8 per cent in 2024-25. The credit ratings firm expressed optimism that the Reserve Bank of India (RBI) is likely going to slash interest rates in its next monetary policy committee meeting scheduled in October.

Giving its economic outlook for Asia-Pacific, S&P noted, “The RBI considers food inflation a hurdle for rate cuts. It reckons that unless there is a lasting and meaningful decline in the rate at which food prices are increasing, it will be tough to maintain headline inflation at 4 per cent. Our outlook remains unchanged: we expect the RBI to begin cutting rates in October at the earliest and have penciled in two rate cuts this fiscal year.”