According to the report by S&P Global, the new economic engine of Asia-Pacific, India, has emerged in time while the world’s second largest economy such as China slumped.
India is expected to be the economic growth power for Asia-Pacific in the next three years as the country’s GDP growth has been revised upward to 6.4% for the fiscal year ending March 2024, compared to the previous forecast for a 6.0% growth, according to S&P global due to an increase in domestic consumption.
The strong domestic demand also gives the countries around Asia-Pacific, such as Indonesia, Malaysia and the Philippines, to possibly foresee the positive GDP growth in this year as well.
While the growth of China’s economy is predicted to be at 4.6% in 2024, a problem to China’s economy, such as the short demand for new properties in the country, could potentially be troublesome.
Despite a number of positive influences for economic growth in Asia-Pacific, S&P had lowered its forecast for the region, China excluded, for 2024 to 4.2% from 4.4% due to the presence of Israel-Hamas war and unstable US economy.
