Global rating agency Moody’s, which had upgraded India to Baa2 stable in mid November, in its latest report has said that India and China remain the fastest growth economies in Asia Pacific region. It further added that a gradual moderation in growth in China (A1 stable) and temporary slowdown in India (Baa2 stable) will be balanced by robust growth trends in other Asian economies.
Talking about Asia Pacific as on whole, the report said that a favourable growth environment underpins its stable outlook for sovereign creditworthiness in Asia Pacific over 12-18 months, although high leverage remains a key credit constraint. The agency further said that most of the economies of the region will continue to be highly leveraged in the government, corporate and household sectors, due to years of slow revenue growth and low interest rates.
For 2018, Moody’s has predicted a 6.5 percent growth for the Asia Pacific emerging markets, 5.9 percent for the frontier economies and 1.8 percent for the advanced economies. The report kept a stable outlook for 21 of the 24 economies included in the report, including Japan (A1), China (A1), and India (Baa2), while the two others got a positive outlook, including Vietnam (B1).
Source: Indian Commodity