Recession may not impact APAC region in 2023: Moody's

It was also noted that global industrial production had remained “fairly level” after it peaked in February—right before the Russia-Ukraine crisis, according to Moody’s analysis report titled APAC Outlook: A Coming Downshift.

India’s growth was predicted to stagnate to 8 per cent in 2022 and even a further 5 per cent in 2023 compared to 8.5 per cent in 2021 as per Moody’s forecast in August. However, inward investment is expected to push the nation’s economic growth. In case high inflation remains, the Reserve Bank of India is expected to hike its repo rate above 6 per cent, weakening GDP growth, said several Indian media reports quoting Moody’s.

“China is not the only weak link in the global economy. The other giant of Asia, India, also suffered a year-to-year decline in the value exports in October. At least India relies less on exports as an engine of growth than does China. That said, a recession is not expected in the APAC region in the coming year, although the area will face headwinds from higher interest rates and slower global trade growth,” said Moody’s analytics chief APAC economist Steve Cochrane.

Despite the expanding economies of India and other APAC countries, the slowdowns faced by China, Europe, and North America will lead to 2023 likely becoming a slower year for economic growth compared to 2022.

ALCHEMPro News Desk (NB)