India, Indonesia and the Philippines were the key growth outperformers in the first half of the year on the back of rising exports, local demand and government infrastructure spending, it observed.
India is projected to be the Asia-Pacific’s fastest-growing economy in the second half this year fuelled by domestic demand growth, Moody’s Ratings said.
The Indian banking system is on a positive outlook.
India and ASEAN economies are likely to see stronger portfolio inflows due to robust corporate credit metrics and attractive valuations, it noted.
India and economies in the Association of Southeast Asian Nations (ASEAN) are likely to see stronger portfolio inflows due to robust corporate credit metrics and attractive valuations.
“India will remain the region’s fastest-growing economy, sustaining last year’s domestically driven momentum. We anticipate policy continuity after the general election, and a continued focus on infrastructure development and encouragement of private sector investment,” the credit rating agency said in its report, titled ‘Credit Conditions—Asia-Pacific H2 2024 Credit Outlook’.
The Indian banking system is on a positive outlook due to sound economic growth and healthy corporate credit quality, the report noted.
The pace of monetary policy normalisation will be uneven across the APAC and the region’s central banks are unlikely to move before the US Federal Reserve, meaning cuts will not arrive until the second half this year or early 2025.
“Volatile commodity prices elevate risks to this time scale, given most countries in the region are net food and oil importers. The Bank of Japan will remain an outlier, but financial conditions will stay accommodative this year,” the report added.
Fibre2Fashion News Desk (DS)