Economy

Moody's cuts GDP growth outlook for India, 15 other Asian countries

Updated : August 23, 2019 04:14 PM IST

Softer capital formation has mirrored the weakening in exports, especially for trade-reliant economies.

The slower overall GDP growth in the region has not yet weighed significantly on broader employment conditions.

Moody's cuts GDP growth outlook for India, 15 other Asian countries

Moody's Investors Service on Friday released a report which revised downward its GDP forecast for 16 Asian economies. The revision came due to sharp slowdown in 'externally oriented' economies, as well as domestic factors holding back Japan, India and the Philippines.

The report covers the economies of Australia, China, Hong Kong, India, Indonesia, Japan, South Korea, Malaysia, Mongolia, New Zealand, the Philippines, Singapore, Sri Lanka, Taiwan, Thailand, and Vietnam.

Softer capital formation has mirrored the weakening in exports, especially for trade-reliant economies such as South Korea and Hong Kong, Moody's said. Domestic factors have had a greater influence on growth in Japan, India and the Philippines.

Of the 16, Hong Kong and Singapore have shown particularly weak expansions this year, with very large deteriorations in real GDP growth when compared to the first half of 2018, the report said.

It also points out that the weaker global economy has stunted Asian exports and the uncertain operating environment has weighed on investment.

Moody’s also says the slower overall GDP growth in the region has not yet weighed significantly on broader employment conditions, while generally benign inflation supports purchasing power across AsiaPacific.

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