look news india
New Delhi: Global rating agency S&P Global Ratings has cut India’s GDP growth forecast for the next two financial years. The main reason for this is the decline in urban demand due to high interest rates.
Updating its economic forecast for Asia-Pacific economies after the US election results, the rating agency projected gross domestic product (GDP) growth at 6.7 per cent in fiscal year 2025-26 (April 2025 to March 2026) and 6.7 per cent in fiscal year 2026. Estimated to be 6.8 percent. The percentage is estimated to be.
S&P has estimated the GDP growth rate to be 6.8 percent in the current financial year 2024-25. The rating agency expects the GDP growth rate to be 5 percent in the financial year 2027-28. S&P maintained its growth forecast for China at 4.8 percent in 2024, but cut its forecast for next year to 4.1 percent from 4.3 percent previously. The previous estimate of 4.5 percent for 2026 was reduced to 3.8 percent.
Economists at S&P Global Ratings (Asia-Pacific) said rising risks are weakening the economic outlook for Asia-Pacific in the first quarter of 2025. While most countries in the region have managed to maintain strong growth.
China’s stimulus will support growth, but S&P believes its economy will be hit by US trade tariffs on its exports. Asia-Pacific growth will be hampered by a slowdown in global demand and US trade policy. But low interest rates and inflation should ease pressure on their spending power.