• Source:PTI
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Fitch rating on Wednesday said that economic growth in Asia Pacific will remain strong in 2024, with India and emerging market economies expecting GDP growth of around 5 per cent.

In its report titled 'APAC Cross-Sector Outlook 2024', Fitch said the banking sectors in India and Indonesia, as well as APAC emerging markets as a whole, are poised to improve in 2024, partly reflecting a stronger economic backdrop.

"Economic growth in APAC will generally remain strong in 2024, especially in emerging markets (EMs), supporting sector outlooks across the region. We expect real GDP to expand by, or above, 5 per cent in India, Indonesia, the Philippines and Vietnam, and China's performance will still be strong by most other countries' standards," said Fitch.

The Indian economy has seen a growth of 7.2 per cent in the financial year 2022-23. India's GDP grew 7.8 per cent and 7.6 per cent in the June and September quarters respectively.

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Fitch had said last month that the agency expects India to be among the world's fastest-growing major sovereign countries, with GDP growth of 6.9 per cent this fiscal year, followed by 6.5 per cent in 2024-25.

"Robust regional economic growth – particularly in Asia's large emerging markets - should offset headwinds from slowing growth in China, weak global demand and high-interest rates, helping to support performance across sectors in APAC in 2024," Duncan Innes-Ker, Fitch Ratings Senior Director said.

Fitch said headwinds from slower Chinese growth, weaker global demand and higher interest burdens following an increase in interest rates for 2022-23 will weigh on the performance of many sectors. But Fitch's APAC sector outlook for 2024 remains largely neutral.

The Fitch said that Sino-US tensions have seen an ease in recent times, but the relations are expected to remain challenging, which will lead companies to pursue further supply-chain diversification to limit exposure to geopolitical risks.

(With PTI Inputs)

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