Moody's raises 2023 growth forecast for Turkiye, India & US

In the August update to its Global Macro Outlook 2023-24, the rating agency also upwardly revised Turkish economic growth forecast for 2024 to 3 per cent from 2 per cent estimated in May.

It raised India's growth projection for this year to 6.7 per cent from 5.5 per cent.

Real gross domestic product (GDP) growth for the G-20 is estimated to slow to 2.5 per cent this year and 2.1 per cent in 2024 from 2.7 per cent in 2022, it noted.

In the Global Macro Outlook 2023-24 (August update), Moody's said strong services expansion and capital expenditures have propelled India's 7.8 per cent real GDP growth in the second (April-June) quarter from a year ago.

The agency, however, expects tight financial conditions to persist throughout the next year, "tapping brakes on global growth."

Moody's raised its 2023 growth forecast for the US economy to 1.9 per cent from 1.1 per cent in its May outlook.

"China's economy is facing considerable growth challenges, causing us to cut our 2024 growth expectations," said the agency, which has lowered its growth expectation for 2024 for the Asian giant to 4 per cent from 4.5 per cent.

Upside risks to inflation from tight labour markets and resilient demand will keep the US Federal Reserve, the European Central Bank and the Bank of England ‘vigilant’, Moody's added.

ALCHEMPro News Desk (DS)