New Delhi [India], October 22 : India's growth, although moderating, remains strong with a forecasted average of 6.8 per cent for the fiscal year 2024-25 and 6.6 per cent for 2025-26, according to S&P Global Market Intelligence.
Despite a slowdown in economic momentum due to weaker public-sector investment, the outlook for India's economy is buoyed by several positive factors.
Easing inflation, favourable monsoon conditions, and increased government social spending are expected to boost household demand. Additionally, healthy corporate balance sheets are playing a vital role in supporting the recovery of private investment.
S&P Global Market Intelligence has released its October Global Economic Forecast update, emphasizing a steady global economic expansion supported by policy stimulus, while acknowledging risks from geopolitical factors.
The outlook highlights moderating inflation and easing monetary policies as key factors steering the global economy towards a "soft landing."
Ken Wattret, global economist at S&P Global Market Intelligence, remarked, "The global economy is on track for a soft landing, with inflation rates moderating and monetary policy easing becoming more widespread. Still, geopolitical developments have the capacity to dampen or even derail the expansion."
Report forecasts an annual real GDP growth rate of 4.3 per cent in 2024 and 4.4 per cent in 2025 for the region excluding China and Japan.
Aiding this growth is resilient domestic demand, as regional central banks adopt more accommodative monetary stances.
The start of the US Federal Reserve's easing cycle in September is creating more room for interest rate cuts, prompting several central banks, including those in the Philippines, New Zealand, Hong Kong SAR, and Indonesia, to lower rates.
S&P Global Market Intelligence underscores that while the global economic outlook remains positive, risks persist. Geopolitical tensions could potentially derail economic progress, especially in regions with heightened uncertainties.
Nonetheless, policy measures aimed at stimulating growth, coupled with moderating inflation, are setting the stage for a sustained economic expansion.
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