India's Economy is Expected to Decelerate in 2023

Moody's Analytics said the economy of the Asia-Pacific (APAC) region is slowing, but a recession is unlikely in the region (AFP)

FREMONT, CA: In its most recent study–APAC Outlook: A Coming Downshift–Moody's Analytics predicted that India would experience slower growth in 2019, which would be more aligned with its long-term potential. According to the rating agency, increased productivity in agriculture and technology might speed up the nation's growth.

The RBI would raise the repo rate over six per cent if inflation persisted, which would cause the GDP to contract. In August, Moody's predicted that India's growth would decrease from 8.5 per cent in 2021 to eight per cent in 2022 and then to five per cent in 2023. Although the economy of the Asia-Pacific (APAC) region is slowing, a recession is not probable in the area.

The APAC would face increased interest rates and slower global trade growth. Despite the region facing challenges from rising interest rates and weaker global trade development, a recession is not anticipated in the APAC region in the upcoming year. China is not the only weak link in the global economy. India's value exports in October fell year over year as well.

However, it was noted that India depends less on exports as a growth driver than China.

even while the pandemic-related shutdowns of China and other key APAC economies have delayed their reopenings, the projected slowdowns in Europe and North America would make 2023 a worse year for economic growth than 2022.

International Monetary Fund (IMF) predictions from last month indicated that the global growth rate will decline from six per cent in 2021 to 3.2 per cent in 2022 and 2.7 per cent in 2023. According to IMF chief economist Pierre-Olivier Gourinchas, at a time when a global recession is on the horizon, India has emerged as a shining star.