Synopsis: Moody's reports that Indonesia, the Philippines, and India led economic growth in the first half of 2024, driven by rising exports, local demand, and infrastructure spending. India is expected to remain the fastest-growing economy in the Asia-Pacific region in 2024, maintaining its domestic growth momentum.
Moody's reports that Indonesia, the Philippines, and India led economic growth in the first half of 2024, driven by increasing exports, local demand, and infrastructure spending.
India is set to remain the fastest-growing economy in the Asia-Pacific region in 2024, continuing its domestic momentum from last year.
The report, "Credit Conditions – Asia-Pacific H2 2024 Credit Outlook," released on June 13, highlights anticipated policy stability and ongoing infrastructure and private investment post-general election.
Moody's also foresees stronger portfolio inflows into India and ASEAN due to strong corporate credit metrics and attractive valuations.
Last month, Moody's projected India's economic growth at 6.6% for the current fiscal year, supporting non-bank finance companies' profitability.
They expect India's economy to grow by 6.6% in FY25 and 6.2% the following year, promoting robust loan growth in NBFCs despite rising funding costs.
Moody's FY25 growth forecast aligns with Deloitte's but is lower than the Reserve Bank of India (RBI), Asian Development Bank (ADB), Fitch Ratings, S&P Global Ratings, and Morgan Stanley, which predict higher growth rates.
In conclusion, Moody's highlights the strong economic performance of Indonesia, the Philippines, and India in the first half of 2024, with India poised to remain the fastest-growing economy in the Asia-Pacific region.
This growth is underpinned by rising exports, robust local demand, and significant government investment in infrastructure.
Moody's report, "Credit Conditions – Asia-Pacific H2 2024 Credit Outlook," emphasizes the expectation of policy continuity post-general elections in India, fostering ongoing infrastructure development and private sector investment.
Despite Moody's slightly lower GDP growth forecast for India at 6.6% for FY25 compared to other agencies like the Reserve Bank of India and Asian Development Bank, the outlook remains positive with strong credit demand supporting non-bank finance companies' profitability.
The agency anticipates continued strong portfolio inflows into India and ASEAN economies, driven by appealing corporate credit metrics and valuations.
Overall, India's economic momentum is set to sustain, ensuring its position as a leading growth economy in the region.
