India to to be the fastest growing economies in ASEAN: Moody’s
India will remain the region's fastest-growing economy, sustaining last year’s domestically driven momentum and its policy momentum is expected to continue as the new government takes charge with a reduced majority, according to ratings firm Moody’s.
“We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment” the ratings firm said in a report.
In the first half of calendar year 2024, Indonesia, Philippines and India led the way and should continue to outperform pre-COVID growth numbers on the back of rising exports, local demand and government spending lift.
Stronger inflows are likely in India and ASEAN economies, because of robust corporate credit metrics and appealing valuations,Moody’s said. For China, there are likely to be marginal increases in inflows as the effects of stimulus measures to support the property sector and the economy take hold according to the global ratings firm.
It also noted that the Indian banking system is on positive outlook because of good economic growth and healthy corporate credit quality. The China, Hong Kong and Korea banking systems on the other hand are on a negative outlook because of macroeconomic challenges and property market-related weakness.
Geopolitical strife can also distort FDI flows and influence investment decisions and India seems to be benefiting here. The lack of recovery of FDI into China, particularly in strategic sectors like semiconductors, st em from US
