Moody’s predicts GDP growth to decrease to 6.1% in 2024 | Business News

Moody’s Analytics has projected that India’s economy will grow at a rate of 6.1% in 2024, a decrease from the 7.7% growth seen in 2023. The report, titled ‘APAC Outlook: Listening Through the Noise’, highlighted that India and Southeast Asia have experienced some of the largest output losses globally due to the Covid-19 pandemic and are only beginning to recover.

According to the report, India’s GDP is still 4% lower than it would have been without the pandemic, while ASEAN countries are facing a 6% output loss compared to pre-pandemic projections. Moody’s Analytics expects India’s GDP to grow by 6.1% in 2024, following a growth rate of 7.7% in the previous year.

The inflation outlook for India remains uncertain, with consumer price inflation rates hovering around 5%, close to the upper end of the Reserve Bank of India’s target range of 2% to 6%. However, India’s retail inflation declined to a five-month low of 4.85% in March, primarily due to cooling food prices.

Despite the challenges, Moody’s Analytics stated that the Asia Pacific region is performing better than other parts of the world, with an expected growth rate of 3.8% in 2024 compared to 2.5% for the global economy. The Reserve Bank of India has retained a retail inflation projection of 4.5% for 2024-25, citing continued uncertainties in food prices and geopolitical tensions affecting commodity prices and supply chains.

Overall, the economic outlook for India and the Asia Pacific region remains positive, with efforts being made to address the challenges and uncertainties in the coming years.