India will be the fastest growing economy for three years, China is nowhere in its competition.
S&P released its economic outlook on Monday. In this, India’s growth forecast for the current financial year has been retained at 6 per cent, while in the financial year 2025 and 2026, it has been estimated to grow at a pace of 6.9 per cent. In the financial year 2023, India’s economy had grown at a speed of 7.2 percent. The agency says that the performance of the Indian economy in the March quarter was much better than expected.
when will the installment reduce
S&P says that fuel and core inflation are likely to ease due to lower crude oil prices and lower demand. Inflation is estimated to be five per cent in the financial year 2024 and then it could be around 4.5 per cent for the next two years. The agency said that the inflation and rate hike cycles have passed their peak. RBI may cut interest rates early next year. By the end of this financial year, it can come up to 6.25 percent, which is now 6.5 percent. However, it is not expected to go below five per cent in the medium term.
China’s growth forecast reduced
The agency has reduced China’s growth forecast. Earlier it was estimated to be 5.5 percent but now it has been reduced to 5.2 percent. However, the agency has increased the growth forecast for the US and the Eurozone. But the growth forecast for Asia-Pacific has been cut by 0.1 percent. He says that despite the crisis in the banking sector, the services sector labor market in the US and Europe remained in a better condition for the second consecutive quarter. But the agency also cautioned that higher interest rates could put pressure on Asia-Pacific markets and currencies.