Moody’s, S&P cut growth forecasts for Asian economies
The agency maintained its growth forecasts for the Chinese economy at 6.8% for 2015, but Moody’s lowered its growth outlook for China to 6.3% from its previous estimate of 6.5% for 2016. The agency had earlier slashed its growth expectations for the Indian economy to a growth rate of 7% from an initially estimated growth rate of 7.5% for this year.
According to the Moody’s, APAC countries excluding China, India and Japan will grow 3.0% in 2015 and 3.2% in 2016, down from earlier growth expectations of 3.6% and 4%, respectively.
Following Moody’s revision, Standard & Poor’s (S&P) also lowered their growth forecasts for Asian economies due to weak trade data, especially from China. According to S&P, the region’s gross domestic product will expand 5.4% this year compared with their earlier estimate of 5.5%. On a country basis, the rating services retained their expectations for China’s economy at 6.8% for this year while it cut its growth forecast to 6.3% from 6.6% for 2016 and to 6.1% from 6.3% for 2017. The rating service also maintained its growth expectations for the Indian economy while it raised its growth expectations for Malaysia’s economy to 4.7% from its previous growth forecast of 4.6% for 2015.
S&P also lowered their growth expectations for Indonesia, the Philippines, Singapore, Taiwan and Thailand, adding that they expect local currencies to depreciate further against the dollar.
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