Moody predicts the status of the Global Economies
One of the world’s leading financial conglomerates, the Moody corporation’s wing, the Moody’s Investor Services has released its predictions for the economies of the world.
What does the report say about India?
- Moodys Investors Service has cut its growth projections for Indias GDP growth in 2019 to 6.2%.
- This is lower than its previous estimation of 6.8%.
- It has attributed the fall in the growth projection to the status of the Indian economy which it claims remains sluggish.
- This sluggishness can be attributed to several factors like a weak hiring market, major distress among the rural households and tighter financial conditions which have constrained lending and buying.
- Similarly, Moody’s Investors Service(MIS) has also reduced India’s growth forecast for the year 2020 by over 0.6% to 6.7%.
What does the report say about other countries?
- Of the other countries, MIS has stated that the global economic scenario is dull and the US-Chian tariff war has taken a toll on economic growth.
- Of the 16 Asian economies assessed by the MIS, the national economies of Hong Kong and Singapore have been found to show very weak expansions in this year and a large deterioration has been observed in the real rate of GDP growth.
- However, MIS has claimed that the domestic factors have a greater influence on the economic growth in Japan, India and the Philippines.
- MIS has also stated that the slower overall GDP growth in the Asia-Pacific region has not yet caused a significant decline in the employment conditions and there are chances that significant job losses may start to take place.
Category: Economy & Banking Current Affairs