Fitch: India is getting stronger among emerging economies, China’s rating is falling.

India Growth Forecast - India TV Paisa
Photo: Freepik India’s growth forecast

The American rating agency Fitch has once again expressed confidence in the Indian economy. Fitch has raised its medium-term growth forecast for the Indian economy by 0.70 percent to 6.2 percent, from 5.5 percent earlier. At the same time, China’s growth projections have been cut. The Indian economy’s growth estimate has been raised by the rating agency at a time when the global economy is facing major challenges like inflation and high interest rates.

Estimates for India and Mexico increase

Rating agency estimates have been raised for India as well as Mexico. Both countries will benefit from better capital-labor ratios, says Fitch. For this reason, India’s estimate has been increased from 5.5 percent to 6.2 percent and Mexico’s estimate has been increased from 1.4 percent to 2.0 percent.

A shock to China

The Chinese economy has been downgraded by Fitch. Along with this, the growth estimate has been drastically reduced by 0.7 percent. Fitch estimates that the Chinese economy could grow at a rate of 4.6 percent, up from 5.3 percent previously.

Growth estimates for these countries increased.

Fitch raised Poland’s growth forecast to 3.0% from 2.6%, Turkey’s growth to 3.9% from 4.1% and Indonesia’s growth to 4.9% from 4.7%.

At the same time, Russia’s economy growth estimate has been cut to 0.8% from 1.6%, South Korea’s growth estimate has been cut to 2.1% from 2.3%. The growth forecast for the South African economy has been cut to 1.0 percent from 1.2 percent.

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