New Delhi [India], S&P Global Market Intelligence has revised up China's GDP forecasts in its latest report. But even with the revised forecast, China's GDP growth will be substantially lower than India's.
According to S&P, India's GDP is projected to grow at a rate of 6.7 percent in 2024 and 6.3 percent in 2025. In contrast, China's economy is now forecast to grow at 5.0 percent in 2024 and a moderate increase is forecast to 4.6 percent. of 4.5 percent.
The agency revised China's estimate due to tailwinds expected to extend into next year and a gradual improvement in private sector sentiment within the country.
However, the Reserve Bank of India (RBI) in its monetary policy has raised India's GDP forecast from 7 per cent to 7.2 per cent for FY25.
RBI Governor Shaktikanta Das said: "Real GDP growth for the current financial year 2024-25 is projected at 7.2 per cent, with a first quarter of 7.3 per cent, a second quarter of 7.2 percent, a third quarter of 7.3 percent and a fourth quarter of 7.2 percent." . The risks are balanced."
The RBI governor also said that "we have increased the GDP growth projection from 7 percent to 7.2 percent and the inflation projection, the average for the year, we have maintained at 4.5 percent as it was." in the last MPC". meeting."
S&P Global Market Intelligence has however lowered growth forecasts for the US, Canada, Brazil and Japan for 2024, while it has revised upwards forecasts for China, the eurozone, the United Kingdom and Russia.
Additionally, the global growth forecast for 2025 has increased from 2.7 percent to 2.8 percent, with higher forecasts for some of the largest countries, including the United States and China.
As for Japan, the agency maintains that the next rate hike by the Bank of Japan will likely occur in October 2024, given the economic and inflationary headwinds.
In the Asia-Pacific region, the agency predicts that real GDP growth, excluding mainland China and Japan, will remain broadly stable at 4.4 percent in 2024 and 2025, driven by strong domestic demand and the recovery of the exports. A rebound in foreign demand is seen as the region's main growth driver in 2024.
According to S&P, India's GDP is projected to grow at a rate of 6.7 percent in 2024 and 6.3 percent in 2025. In contrast, China's economy is now forecast to grow at 5.0 percent in 2024 and a moderate increase is forecast to 4.6 percent. of 4.5 percent.
The agency revised China's estimate due to tailwinds expected to extend into next year and a gradual improvement in private sector sentiment within the country.
However, the Reserve Bank of India (RBI) in its monetary policy has raised India's GDP forecast from 7 per cent to 7.2 per cent for FY25.
RBI Governor Shaktikanta Das said: "Real GDP growth for the current financial year 2024-25 is projected at 7.2 per cent, with a first quarter of 7.3 per cent, a second quarter of 7.2 percent, a third quarter of 7.3 percent and a fourth quarter of 7.2 percent." . The risks are balanced."
The RBI governor also said that "we have increased the GDP growth projection from 7 percent to 7.2 percent and the inflation projection, the average for the year, we have maintained at 4.5 percent as it was." in the last MPC". meeting."
S&P Global Market Intelligence has however lowered growth forecasts for the US, Canada, Brazil and Japan for 2024, while it has revised upwards forecasts for China, the eurozone, the United Kingdom and Russia.
Additionally, the global growth forecast for 2025 has increased from 2.7 percent to 2.8 percent, with higher forecasts for some of the largest countries, including the United States and China.
As for Japan, the agency maintains that the next rate hike by the Bank of Japan will likely occur in October 2024, given the economic and inflationary headwinds.
In the Asia-Pacific region, the agency predicts that real GDP growth, excluding mainland China and Japan, will remain broadly stable at 4.4 percent in 2024 and 2025, driven by strong domestic demand and the recovery of the exports. A rebound in foreign demand is seen as the region's main growth driver in 2024.
