Moody’s Projects India to Lead Asia-Pacific Economic Growth in 2024

Feature and Cover Moody's Projects India to Lead Asia Pacific Economic Growth in 2024

India is set to retain its position as the fastest-growing economy in the Asia-Pacific region in 2024, according to Moody’s Ratings. This growth will be driven by continued domestic momentum established in the previous year.

Moody’s released a report titled “Credit Conditions – Asia-Pacific H2 2024 Credit Outlook,” highlighting that Indonesia, the Philippines, and India have shown remarkable growth in the first half of 2024. These countries are expected to exceed their pre-COVID growth rates due to increasing exports, strong local demand, and significant government infrastructure spending.

The report emphasizes India’s sustained growth trajectory, stating, “India will remain the region’s fastest-growing economy, sustaining last year’s domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment.”

India, along with ASEAN economies, is expected to benefit from stronger portfolio inflows, spurred by solid corporate credit metrics and attractive valuations.

Moody’s recently forecasted that India’s economy will grow by 6.8 percent in the current year and 6.5 percent in 2025, driven by robust economic expansion and policy stability following the elections.

In 2023, India’s real GDP grew by 7.7 percent, up from 6.5 percent in 2022, fueled by substantial government capital spending and a thriving manufacturing sector.

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