Recession Is Unlikely In APAC Region In Coming Year: Moody's ReportThe report added that India is headed for slower growth next year more in line with its long-term potential
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Moody's Analytics, on Thursday, stated that a recession is unlikely in the Asia-Pacific (APAC) region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth, as per a PTI.
In its analysis titled 'APAC Outlook: A Coming Downshift', Moody's added that India is headed for slower growth next year more in line with its long-term potential.
As per earlier reports, in August, Moody's had estimated India's growth to slow to 8 per cent in 2022 and further to 5 per cent in 2023, from 8.5 per cent in 2021.
"The economy of the Asia-Pacific (APAC) region is slowing and this trade-dependent region is feeling the effects of slower global trade. Global industrial production has remained fairly level since it went to peak in February just prior to Russia's invasion of Ukraine," said the reports.
"China is not the only weak link in the global economy. The other giant of Asia, India, also suffered a year-to-year decline in the value exports in October. At least India relies less on exports as an engine of growth than does China," said Moody's Analytics chief APAC economist Steve Cochrane, in a statement.
Cochrane added that, "A recession is not expected in the APAC region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth."
On the regional outlook, Moody's said even though India, as well as other major economies of APAC region are expanding due to their own delayed reopening from pandemic-related shutdowns, the expected slowdowns in Europe and North America, along with China's sluggish economy, will cause 2023 to be a slower year than 2022 for economic growth.
According to the World Economic Outlook released last month, the International Monetary Fund (IMF) had forecasted global growth to slow from 6 per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023.
